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The Daily. Tuesday, December 12, 2000

Household spending

Canadian households spent an average of $53,470 in 1999  on everything from furniture to entertainment; they spent more on automobile purchases and home heating bills. Households spent about on average about 4% more than in 1998, and 7% more than in 1997.

While spending on shelter remained virtually unchanged from 1998, estimated household spending on transportation, food and personal taxes was up.

Transportation rose 8% to an average of $6,880, four times the increase of just 2% in 1998. The jump was mainly the result of higher spending on car and truck purchases, and on gasoline. (Gasoline prices rose 9% between 1998 and 1999.) In addition, households spent more on driving lessons, registration fees and licences.

Spending on heating fuels such as oil and gas rose 7% to an average of $480, owing primarily to higher natural gas prices.

Budget share virtually unchanged

Personal taxes accounted for an estimated 22% of the household budget, while shelter costs claimed about 19%, transportation 13% and food 11%. These proportions were virtually unchanged from 1998.

Households paid an average $11,560 in personal taxes (excluding sales tax), $740 more than in 1998. This corresponds to an increase in average household income.

Households spent an estimated $6,100 on food, up 3% from 1998. This includes spending on restaurant meals. For the 37% of households that rented, spending on rental accommodation rose 4% to $6,420.

Households spent more on clothing, personal grooming and entertainment

Spending on clothing increased 6% to an average of $2,330, mostly owing to an increase in spending on women's and girls' wear. Amounts spent by all household members on personal care services (but not supplies and equipment) such as hair grooming, facials, manicures and tanning salons increased 4% from 1998 to an average of $370.

Note to readers The data for this release come from the 1999 Survey of Household Spending, and were collected from January to March 2000 from a sample of about 17,000 private households in all the provinces and territories. The survey captured detailed information on spending, dwelling characteristics, and household equipment. Comparisons of expenditures are not adjusted for inflation. All figures in this release have been rounded. The estimation methodology was changed for 1999. Current and historical estimates in this release have been adjusted to reflect 1996 Census population and household counts, replacing the 1991 counts used previously. All estimates in this release have also been adjusted to reflect the income distribution of the Canadian population. This adjustment is derived from T4 tax form information from the Canada Customs and Revenue Agency (formerly Revenue Canada) and is intended to ensure that the weighted distribution of wages and salaries in the data set matches that of the Canadian population. Selected tables showing revised data from the 1996 Family Expenditure Survey and the 1997 and 1998 Survey of Household Spending will soon be available. Custom tabulations for these survey years may also be obtained. Revised data for the Household Facilities and Equipment Survey and the 1992 Family Expenditure Survey are planned. For more information, contact Client Services (1-888-287-7355). The public-use microdata files for the 1992 and 1996 Family Expenditure Surveys, the 1997 and 1998 Surveys of Household Spending and the historical Household Income, Facilities and Equipment files will be reissued over the next several months with the new weights. To enquire about the availability of the replacement files, contact Client Services (1-888-287-7355).

Spending on entertainment in 1999 grew 10% to $560, mainly because of a 9% increase in spending on cable and satellite services. Spending on movies and live sports events also went up.

Health care spending rose 6% to $1,260 in 1999. This was mainly the result of a 12% increase in spending on dental services (to $260 on average), as well as on non-prescription pharmaceutical products such as painkillers, vitamins and cough syrup (to $150 on average).

Lower spending on insurance but holding steady on RRSP contributions

Spending on insurance premiums decreased between 1998 and 1999. Payments on life insurance premiums were down 8% to an average of $350. Payments on Employment Insurance premiums were down 5% to an average of $760, and payments on homeowner's insurance premiums were also down 5% to an average $290.

Net contributions to Registered Retirement Savings Plans remained flat in 1999 at $3,640 for the 42% of households that reported making these contributions or withdrawals.

Average household expenditure and budget share

Food and shelter costs accounted for half the spending in lowest-income households

In 1999, the average spending of the one-fifth of households with the lowest incomes was $17,750, compared with $106,970 for the one-fifth of households with the highest incomes. (For the purposes of this analysis, households were divided into five quintiles based on their income. Each group represented one-fifth, or 20%, of all households.)

After adjusting for differences in household size, total spending per person was $14,500 for households in the lowest income quintile and $55,200 for households in the highest income quintile.

Average per-person spending on food was estimated at $2,580 (adjusted for household size) for the lowest income quintile and $4,800 for households in the highest income quintile. Similarly, per-person spending on shelter was $4,620 (adjusted for household size) for the one-fifth of households with the lowest incomes and $8,430 for the one-fifth of households with the highest incomes.

Food and shelter accounted for half of the budget for households in the lowest income quintile, and personal income taxes for 3%. In contrast, households in the highest income quintile devoted only one-quarter of their budgets to food and shelter, and 30% to personal income taxes. These proportions were unchanged from 1998.

Percentage of household budget spent on four major caterogies by income quintile

1999

Average household spending highest in Northwest Territories

In 1999, the Northwest Territories had the highest average provincial or territorial household expenditure at $79,680. The Yukon and Alberta followed with an average of approximately $60,000 each. Newfoundland continued to have the lowest average, $42,510.

Average household expenditure by province/territory

Among the 17 metropolitan areas for which data are presented in 1999, the highest average spending ($93,830) was reported by households in Yellowknife, followed by Toronto ($65,810) and Calgary ($65,010).

Average household expenditure by metropolitan area

Cellphones, Internet changing communications spending

Spending on standard telephone service (which includes long-distance service) declined 4% to an average of $680 in 1999. The proportion of households with a cellular phone increased to 32% in 1999 from 26% in 1998. However, spending on cellular services, for those households that reported it, fell about 7% to an average of $460.

Average spending on computer equipment and supplies in 1999 for households reporting was about $920. In 1999, half of Canadian households reported having a computer, a five-percentage-point increase over 1998, and 10 points over 1997.

Among households that reported spending on Internet services, spending increased 9% to an average of $260. Thirty-three percent of households reported having Internet access from home, compared with only 25% in 1998 and 17% in 1997.

Three tables presenting summary-level household spending data for Canada and provinces/territories and selected metropolitan areas, as well as dwelling characteristics and household equipment, are available free on Statistics Canada's Web site. On the Canadian Statistics page, choose The People, then Families, households and housing, then Expenditures or Housing.

These five tables present detailed household spending data: Canada, provinces/territories and selected metropolitan areas, 1999 (62F0031XDB); Household income quintile, Canada and the provinces, 1999 (62F0032XDB); Housing tenure, Canada, 1999 (62F0033XDB); Household type, Canada, 1999 (62F0034XDB); and Size of area of residence, Canada, 1999 (62F0035XDB).

These five tables present data on dwelling characteristics and household equipment: Canada, provinces/territories and selected metropolitan areas, 1999 (62F0041XDB); Income quintile, Canada, 1999 (62F0042XDB); Housing tenure, Canada, 1999 (62F0043XDB); Household type, Canada, 1999 (62F0044XDB); and Size of area of residence, Canada, 1999 (62F0045XDB).

All 10 tables are now available at $125 per table. Custom tabulations are also available.

A user guide (62F0026MIE) presenting information about survey methodology, concepts, and data quality is available free on Statistics Canada's Web site. On the Products and Services page, choose Research papers (free), then Personal finance and household finance. The publication Spending patterns in Canada, 1999 (62-202-XIE; 62-202-XPE) will be released in June 2001.

For more information about the Survey of Household Spending, or to enquire about the concepts, methods or data quality of this release, contact Client Services, Income Statistics Division (1-888-297-7355; 613-951-7355; income@statcan.gc.ca).