US Consumer Spending on Education Services to Increase 2.3% Per Annum in Nominal Dollars to 2023

6/12/2019

Cleveland, OH, June 12, 2019 — US consumer spending on education services is projected to increase 2.3% per year in nominal dollars through 2023, according to Education: United States, a report recently released by Freedonia Focus Reports. Advances in nominal terms will primarily reflect price increases. Spending on education services in real (inflation-adjusted) terms is forecast to remain flat through 2023. Real spending will be supported by gains in higher education enrollment, itself driven by worker desire to remain competitive as well as intensifying consumer confidence and willingness to take on student debt. However, tepid growth – and declines in some cases – among the prime school-aged population cohorts will offset those advances.

Spending on public higher education is expected to account for the largest share of value growth. Relatively low tuition costs will continue to drive enrollment in public higher education over competing nonprofit private institutions. In addition, public institutions will continue to benefit from the shift from the for-profit segment, absorbing their students, infrastructure, and technological capabilities.

These and other key insights are featured in Education: United States. This report forecasts US personal consumption expenditures (PCE) on education services in nominal US dollars to 2023. Select US demographic segments are also forecast to 2023. Total PCE is segmented by institution type in terms of:

  • public higher education
  • private nonprofit higher education
  • private for-profit higher education
  • commercial and vocational
  • elementary and secondary
  • day care and nursery

To illustrate historical trends, total spending, total population, and the various segments, as well as state and local government spending on elementary and secondary education services, are provided in annual series from 2008 to 2018.

This report includes the expenditures of individuals and nonprofit institutions that primarily serve individuals. Spending subsidized by third parties, including the government, is also included, though government spending on public education is excluded. Homeschooling, in which the substantive instruction and training is provided by a non-institutional entity such as a parent or guardian, is excluded. This report excludes spending on education-related goods, as well as spending by US citizens on education in foreign countries. Spending by foreign citizens on education in the US is included.

More information about the report is available at:

https://www.freedoniafocusreports.com/Education-United-States-FF95060/?progid=91541