Housing drives increase in spending

Average weekly household expenditure increased by $58 to $1,010 between 2006/07 and 2009/10, Statistics New Zealand said today. This increase was due to higher average weekly expenditure on housing and household utilities (up $40), food (up $15), and communication (up $5). However, spending on household contents and services decreased $5.

Results from the latest three-yearly Household Economic Survey (HES) showed significant changes in household spending between 2006/07 and 2009/10:

housing and household utilities – rent, up $22 to $88; and household energy up $7 to $43, with electricity up $6 to $37
food – restaurant meals and ready-to-eat food, up $5 to $43; meat, poultry, and fish up $3 to $27; and non-alcoholic beverages, up $2 to $10
household contents and services – furniture and furnishings, down $4 to $12; and major household appliances, down $2 to $7.

In 2009/10, the housing and household utilities group was the largest component of household spending, making up one-quarter of total household expenditure (up from 22 percent in 2006/07). The next largest components are food (18 percent) and transport (13 percent).

For those making rent payments, 33 percent made weekly payments over $300 in 2009/10, up from 22 percent in 2006/07.

Other survey results showed that average annual household income increased from $68,710 to $76,584 between 2006/07 and 2009/10, driven by increases in wages and salaries, other government benefits, and New Zealand Superannuation and war pensions.

Highlights

From the year ended 30 June 2007 to the year ended 30 June 2010:
Average weekly household expenditure increased by 6.1 percent from $952 to $1,010.
The following expenditure groups had the largest changes:
housing and household utilities, up $40 to $253
food, up $15 to $178
communication, up $5 to $36
household contents and services, down $5 to $45.
Average annual household income from regular sources increased 11.5 percent to $76,584.