Intuit Confirms Americans’ Spending up 9 Percent Since 2009

  Intuit Confirms Americans’ Spending up 9 Percent Since 2009

    Inaugural Intuit Consumer Spending Index Gives Unprecedented View into
               Spending Trends; Shows Growth from Gas to Gifts

Business Wire

MOUNTAIN VIEW, Calif. -- May 08, 2013

U.S. consumers are spending again. After a prolonged lull following the 2008
recession’s historic spending lows, consumers are now spending about nine
percent more than they did just four years ago. Gasoline, gift and healthcare
spending have increased significantly, and the biggest spenders are men.

These are among the findings of the new Intuit Consumer Spending Index, from
Intuit Inc. (Nasdaq: INTU), which provides a unique view into the U.S.
economy. The Intuit Consumer Spending Index findings are based on anonymized,
aggregated, transactional data from Mint.com, Intuit’s leading online and
mobile personal finance software.

The key takeaway? Americans are rebounding. The average household spent
approximately $4,220 per month in the first three months of 2013 compared to
$3,870 during the same period in 2009. The most dramatic increases came in
Arkansas and the District of Columbia – up 34 and 30 percent respectively –
with the District of Columbia also spending the most per household this year
at $5,144 a month. By contrast, North and South Carolina each saw spending
decrease by three percent.

The Intuit Consumer Spending Index is the only report that offers a near
real-time view of actual spending, rather than survey responses of what people
say they spend. It does so broadly across both categories and account types;
and using opt-in demographic details from millions of users, the index
accurately reflects the average American household’s monthly spending by age,
income level, state, and more.

“We know from our Mint users that having real insight into their own spending,
and being able to compare to peers helps them make better financial decisions
versus getting generalized advice,” said Lisa Marco Pritchard, Intuit
innovation leader. “The insights from the Intuit Consumer Spending Index can
extend that benefit to more consumers, give economists an invaluable and
unprecedented view, and help financial institutions and other businesses
better understand their customers.”

Diving into the Data

By looking at all the various transactions made in more than 20 specific
categories, the index shows the real-world impact of economic shifts.
Analyzing spending patterns by age, state, income and gender also shows the
relationship between demographic factors and individuals’ spending habits. As
a result, the index helps answer questions that have historically taken years
to determine.

“The data we’ve examined here reflects a period when the country recovered
from one of the most dramatic economic shifts in recent history – showing how
consumers tightened, and have since loosened spending,” said Scott R. Baker,
Stanford University economist and the data scientist working with Intuit to
develop the index. “It demonstrates how Intuit’s data can show the real-world
impact of macro-economic trends on how people live.”

Among the insights the index reveals:

  *Gourmet goes mainstream: Grocery spending has increased by 17 percent, due
    in part to the price of premium groceries. For example, Californians are
    spending nearly 20 percent more at premium grocers like Whole Foods
    Market, while they’ve pulled back by three percent at more general
    grocers.
  *No more reservations about restaurants: Restaurant spending has also
    increased, up 11 percent, echoing what Mint.com users say: Eating out is
    the first area they cut when they want to save money. The recovery sends
    them back out, especially those under 36, who are spending 40 percent more
    now.
  *Wallets wide open at the pump: Gasoline is one of the fastest-growing
    categories, close to doubling in the time examined. The average American
    household spent $198 a month on gas in the first three months of 2013,
    compared to $110 a month during the same time period in 2009. Continued
    high prices at the pump are the leading cause, with the cost of crude oil
    doubling from 2009 to 2013.

       *Looking at how gas spending breaks down across state lines, Wyoming
         and Iowa were hit the hardest, with spending nearly tripling. On the
         other hand, Pennsylvania’s only increased 31 percent.

  *Healthy, not wealthy: Healthcare spending has increased at one of the
    fastest rates since 2009, with average increases more than 30 percent.
    While older people (41-55) spend more than $300 each month, younger people
    saw the most dramatic increase. Their spending increased by more than 40
    percent since the first three months of 2009. For example, 26-31 year
    olds’ healthcare spending rose from $179 a month in the first quarter of
    2009 to $252 a month so far this year.
  *Gender gap: Men consistently spend $600 to $700 more a month than women.
    Where? In the first quarter of 2013, men spent more on alcohol (37
    percent), entertainment (27 percent), eating out (29 percent), gas (19
    percent) and overall shopping (six percent). However, women spend 21
    percent more on clothing and apparel.
  *Growth in giving: Though overall spending has increased nine percent, a
    disproportionate amount of that is in gift giving and charitable
    donations, where Americans have become 47 percent more generous since
    2009.

Data for the Nation; Connected Services Shed Light from the Cloud

This is the third index launched by Intuit. The monthly Intuit Small Business
Employment and Revenue indexes provide a picture of the economic health of the
nation’s small businesses, giving those businesses a better understanding of
how they are doing compared to others. With these indexes, Intuit offers a
unique view into the economy based on the 45 million customers it serves who
are using Intuit connected services such as Mint.com and QuickBooks small
business accounting software to manage their financial lives.

Further information on the Intuit Consumer Spending Index, including
additional data, charts and insights are available at:
http://network.intuit.com/2013/05/08/consumer-spending-index/.

About the Intuit Consumer Spending Index

The Intuit Consumer Spending Index is based on anonymized, non-identifiable
aggregated data from the more than 2 million Mint.com users who have opted to
provide demographic information including age, gender, income and location.
This is a subset of the nearly 13 million people who use the personal finance
software. The data has been analyzed and normalized to create a statistically
relevant view that better represents the average American household.

The index measures spending habits from January 2009 to April 2013, reporting
the average amount spent per account each month, across various spending and
demographic categories. It allocates spending into 20 sub-categories, such as
groceries, restaurants, gas and others, to show how consumers spend, where
they cut when times are tough, and how they have rebounded with the economy.
Spending patterns are also tracked by age, location, income and gender to
measure the impact that demographic factors have on an individual’s spending
habits.

The data tracks all consumer expenditures while excluding transactions such as
transfers between financial accounts, withdrawals, deposits, income, such as
paychecks or investment-related income, (including stock and rental
properties, etc.) or taxes. Cash purchases are also not captured in the index,
as they are not automatically tracked in Mint.com.

Customized data pulls and access to the underlying data is available upon
request. To request additional access to the Intuit Consumer Spending Index
please contact: mint@atomicpr.com.

Further information on the index can be found here.

About Intuit Inc.

Intuit Inc. is a leading provider of business and financial management
solutions for small and mid-sized businesses; financial institutions,
including banks and credit unions; consumers and accounting professionals. Its
flagship products and services, including QuickBooks®, Quicken® and TurboTax®,
simplify small business management and payroll processing, personal finance,
and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading
tax preparation offerings for professional accountants. Intuit Financial
Services helps banks and credit unions grow by providing on-demand solutions
and services that make it easier for consumers and businesses to manage their
money.

Founded in 1983, Intuit had annual revenue of $4.15 billion in its fiscal year
2012. The company has approximately 8,500 employees with major offices in the
United States, Canada, the United Kingdom, India and other locations. More
information can be found at www.intuit.com.

Intuit and the Intuit logo, among others, are registered trademarks and/or
registered service marks of Intuit Inc. in the United States and other
countries.

Intuit Consumer Spending Index is copyrighted by Intuit. Its contents may not
be resold or modified in any way. It can be linked to and referenced with the
following attribution: “Intuit © Intuit Inc. based on Mint.com Spending. All
rights reserved.” These Terms of Use supplement the Mint.com Terms of Service
at: https://www.mint.com/how-it-works/security/terms/

Contact:

Intuit Inc.
Allison Green, 650-944-2512
Allison_green@intuit.com
or
Atomic PR
Martha Shaughnessy, 415-593-1400
mint@atomicpr.com
 
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