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Survey of Household Spending
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Canadian households spent an average of $69,950 in 2007, up 3.3% from 2006. This increase was faster than the annual rate of inflation of 2.2% for 2007, as measured by the Consumer Price Index.
Households in Alberta spent the most on average, $85,910, but this was only a 0.8% increase, the slowest rate among the provinces.
Household spending in Saskatchewan rose 7.7% to $63,940, the fastest rate of growth. Households in Prince Edward Island and Newfoundland and Labrador reported the lowest spending on average.
Table 1
Total average household expenditure by province
Spending on basics accounts for the largest shares
Personal taxes accounted for 21% of the average household's budget in 2007, while shelter represented 20%, transportation 13% and food 10%. These shares changed only slightly from 2006.
Average personal taxes amounted to $14,450 in 2007, up 6.0% from 2006, while spending on shelter rose to $13,640, a 5.1% increase. A 10.6% increase in mortgage payments drove the rise in shelter spending.
Households spent an average of $9,400 on transportation in 2007, up 1.7%. A 6.9% increase in spending on gasoline and other fuels was offset by a 6.3% decline in average spending for automobile purchases.
Note to readersThis release is based on data from the 2007 Survey of Household Spending, which gathered detailed information from a sample of more than 21,000 private households on spending patterns, dwelling characteristics, and household equipment. Data cover all provinces and territories. Average spending for a specific good or service was calculated for all households, including those with and those without expenditures for the category, unless otherwise noted. Average spending includes sales taxes. "Personal taxes" refer to income and certain other direct taxes. Comparisons of spending between years were not adjusted for inflation. The rate of inflation for selected items is mentioned where it affected the analysis of year-over-year changes in spending. To analyze data by income level, households were divided into five groups or quintiles based on income. Each quintile represents one-fifth of all households. Households were ranked in ascending order of total household income, and organized into five groups of equal number. Households in the lowest quintile had 1.5 members on average, while those in the highest quintile averaged 3.4 members. To simplify collection, there were important changes in methodology for the Survey of Household Spending for 2006 and 2007. Data from 1997 to 2005 were revised to be more comparable with those collected with the new methodology, which may affect comparisons with previous years for some purposes. For more details, see the Household Expenditures Research Paper Series: "User Guide for the Survey of Household Spending, 2007" (62F0026MWE2009001, free), accessible on our website. Revised data for the 1997-to-2005 period are also available on CANSIM and for the 2003-to-2005 period in the publication Spending Patterns in Canada, 2007 (62-202-XWE, free), also available on our website. |
On average, households spent $7,310 on food in 2007, up 3.7% from 2006, the fastest annual increase in this category since 2002. Food prices rose by 2.7% in 2007, as measured by the Consumer Price Index.
Spending on cell phones, electronics still on the rise
Average household spending on cell phones and other hand-held text messaging devices amounted to $520 in 2007, up 9.3% from 2006. At the same time, average spending on land-line telephone services fell by 6.7% to $610.
About 71% of households reported having cell phones. The average spending for those households who reported cell phones was $770 per household. About 38% reported having one cell phone, 23% had two, while about 11% had three or more.
Average spending on computer hardware rose 2.8% to $290 per household. The share of households with a home computer increased from 75% in 2006 to 78% in 2007.
About 61% of households reported that they had a high-speed Internet connection in 2007, up from 56% in 2006. Only 9% of households reported using a dial-up connection. Households that reported having an Internet connection spent $430 on average for access to the Internet, a 4.8% increase.
The share of households reporting having a digital video disc (DVD) writer rose from 32% in 2006 to 39% in 2007, while the share with a compact disc (CD) writer rose from 48% to 52%.
Spending down on household furnishings
Average spending on household furnishings and equipment declined 7.8% in 2007 from 2006, one of the few categories to register a drop.
Average spending on clothing increased 2.7% to just over $2,900 per household. Spending on recreation held steady at just under $4,000.
Average spending on retirement and pension fund payments rose 6.8% to $2,710, as a result of higher contributions to Canada and Quebec Pension Plans and payments to other government pension funds.
Spending on tobacco products advanced 2.1% to $620 on average, while spending on alcoholic beverages rose by 5.7% to $920.
Food, shelter and clothing still account for more than half of spending for the lowest income group
The one-fifth of Canadian households with the lowest income spent an average of $22,340 in 2007. Spending on food, shelter and clothing accounted for 52% of their total spending, while personal taxes accounted for 3% of their budget.
On the other hand, the top fifth of households spent an average of $143,360 in 2007, and food, shelter and clothing accounted for 28% of their total spending. Personal taxes accounted for 29% of total spending.
Available on CANSIM: tables 203-0001 to 203-0020.
Definitions, data sources and methods: survey number 3508.
The publication Spending Patterns in Canada, 2007 (62-202-XWE, free), which presents the latest results of the Survey of Household Spending for Canada, the provinces and selected metropolitan areas, is now available from the Publications module of our website.
Two tables presenting spending data are available free from the Summary Tables module of our website: Canada and the provinces and Selected metropolitan areas. A third table with data on dwelling characteristics and household equipment is also available free.
The publication Household Expenditures Research Paper Series: "User Guide for the Survey of Household Spending, 2007" (62F0026MWE2009001, free), which presents information about the survey methodology, concepts, and data quality, is also available from the Publications module of our website.
The data tables on detailed household spending: Detailed Average Household Expenditure for Canada, Provinces/Territories and Selected Metropolitan Areas, 2007 (62F0031XDB, $134), Detailed Average Household Expenditure by Household Income Quintile, Canada and Provinces, 2007 (62F0032XDB, $134), Detailed Average Household Expenditure by Housing Tenure, Canada, 2007 (62F0033XDB, $134), Detailed Average Household Expenditure by Household type, Canada, 2007 (62F0034XDB, $134), and Detailed Average Household Expenditure by Size of Area of Residence, Canada, 2007 (62F0035XDB, $134) are now available.
The data tables on dwelling characteristics and household equipment: Dwelling Characteristics and Household Equipment for Canada, Provinces/Territories and Selected Metropolitan Areas, 2007 (62F0041XDB, $134), Dwelling Characteristics and Household Equipment by Income Quintile, Canada, 2007 (62F0042XDB, $134), and Dwelling Characteristics and Household Equipment by Housing Tenure, Canada, 2007 (62F0043XDB, $134), Dwelling Characteristics and Household Equipment by Household Type, Canada, 2007 (62F0044XDB, $134), and Dwelling Characteristics and Household Equipment by Size of Area of Residence, Canada, 2007 (62F0045XDB, $134) are also now available.
Custom tabulations are also available.
For more information, to purchase products, or to enquire about the concepts, methods or data quality of this release, contact Client Services (toll-free 1-888-297-7355; 613-951-7355; income@statcan.gc.ca), Income Statistics Division.
Table 2
Budget share of major spending categories by income quintile, 2007
