7 Personal expenditure on consumer goods and services

Printable version (PDF) of Chapter 7 (June 30, 2008)

Introduction

7.1 Personal expenditure on consumer goods and services includes outlays of transactors of the persons and unincorporated business sector on durable, semi-durable and non-durable goods, and on services.

7.2 Transactors of the persons and unincorporated business sector include all households as well as associations of individuals serving households and certain collective investment schemes.1 Associations of individuals include non-profit institutions serving households2 (NPISHs) such as charitable institutions, labour unions, professional organizations and religious organizations, as well as fraternal organizations, credit unions and mutual life insurance companies. Collective investment schemes, such as trusteed pension funds and mutual funds, are included since they act collectively for the benefit of individuals. Note that unincorporated businesses are also included in this sector because of difficulties in separating their income between the portion which is withdrawn for personal use and the portion which is retained in the business. However, for households owning an unincorporated business, only the expenditures for personal needs are included. The current expenses related to the business are excluded from personal expenditure and from final demand as they are treated as intermediate inputs, while their capital expenditures are classified as business gross fixed capital formation in the Canadian System of National Accounts (CSNA).

7.3 In the CSNA, personal expenditure on consumer goods and services presently covers the value of households' expenditure as well as the value of the expenditures incurred by NPISHs on individual consumption of goods and services provided to households as a social transfer in kind. A project is underway to decompose government consumption expenditure by function, according to the classification of the functions of government (COFOG). Once this project is completed, it will be possible to calculate household actual final consumption, which consists of the consumption of goods and services acquired by individual households, by expenditures or through social transfers in kind received from government units or NPISHs.

Continue

Back to


Notes

1. This document refers to the "persons" and unincorporated business sector instead of the "households" and unincorporated business sector because of the inclusion of associations of individuals and of certain collective investment schemes.

2. NPISHs are not currently considered as a separate sector in the Canadian System of National Accounts, although Statistics Canada is in the process of developing it.