The Daily. Wednesday, December 12, 2001

Estimates of household spending

Households spent an average of $55,830 in 2000 on everything from shelter to travel, allocating more to vehicle purchases and energy costs than in previous years. On average, households spent about 4% more in 2000, a year of strong economic growth. The increase in household spending marginally exceeded the Consumer Price Index (CPI) inflation rate of 3% in 2000.

Personal taxes accounted for an estimated 22% of the household budget, shelter costs claimed about 19%, and food, 11%. These proportions were virtually unchanged from 1999. Transportation took up 14% of the household budget, continuing the slight increase seen in 1999.

Average household expenditure and budget share

Note to readers The data for this release come from the 2000 Survey of Household Spending, and were collected from January to March 2001 from a sample of about 20,000 private households in all provinces. The survey gathered detailed information on spending, dwelling characteristics, and household equipment. Unlike in previous years, data were not collected in the territories for 2000. (However, data for the territories will again be collected for 2001, and every second year after that.) National totals in this release for years before 2000 do not include the territories. In order to analyse the data by income level, households were divided into five groups, or quintiles, based on their income. Each quintile represents one-fifth of all households. Quintiles are created by ranking households in ascending order of total household income and dividing the households into five groups such that the estimated number of households is equal in each group. Since households in the lowest income quintile are smaller on average than households in the largest income quintile, data are adjusted for household size to allow for more realistic comparisons. This adjustment reflects the principle that household size and composition (number of adults and children) affect household needs. For more information, see Spending patterns in Canada, 1999 (62-202-XIE; 62-202-XPE). Comparisons of expenditures in this release are not adjusted for inflation. All figures in this release have been rounded.

Vehicle purchases, gas prices drove transportation spending higher

Spending on all types of transportation averaged $7,580 per household, a 10% increase from 1999, compared with an 8% increase in 1998. The increase was mainly due to higher spending on the purchase of all types of new and used vehicles, especially trucks, vans and sport utility vehicles. The 8% of households purchasing trucks or vans in 2000 reported spending an average $15,970. The 10% of households leasing a vehicle reported spending just under $5,000, approximately the same as in 1999.

Higher transportation spending was also due to higher spending on gasoline. Households with gasoline expenditures spent an average of $1,950 in 2000, compared with $1,700 in 1999. The price of gasoline as measured by the CPI rose 22% in 2000.

Heating costs rose

Spending on shelter rose a slight 3% from 1999 to an average $10,500. This figure includes spending on heating fuels such as oil and gas, which climbed 20% to an annual average of $1,000 for those households reporting. For some households, heat is included in rent.

Households spent an estimated $6,220 on food, including restaurant meals, up 2% from 1999. They also paid an average of $12,010 in personal taxes (excluding sales tax), 4% more than in 1999.

Spending on communications technology continued upward trend

The proportion of households having a cellular telephone increased to 42% in 2000, from 32% in 1999. Average spending on cellular services for those reporting was up 5% to $480. Spending on telephone services increased slightly to an average of $720 for the 98% of households reporting.

Forty-two per cent of households reported Internet use from home in 2000. This compares with 33% in 1999, 25% in 1998, and 17% in 1997. Households with Internet services spent an average of $280 in 2000, up 7% from 1999.

The percentage of households that purchased new computers and related hardware continued to rise in 2000, from 15% to 18%. Households that bought new computers reported spending $1,570 on average in 2000 compared with $1,600 in 1999, as prices for these items fell. The percentage of households owning computers continued to rise, reaching an estimated 55% by the end of 2000.

Spending on cable and satellite services for the three-quarters of households with these services rose 7% to an average of $480.

Average spending on tourism up in 2000

Households spent more on tourist-related accommodation and transportation in 2000 than they did in 1999. For the 22% of households reporting expenditures on air transportation in 2000, average spending rose 15% to $1,600, while the cost of air travel as measured by the CPI was up 3%. Similarly, for the 11% of households reporting expenditures on package travel tours, average spending rose 16% to $2,780. In addition, average household spending on hotel and motel accommodation was almost $900 for those households reporting, up 13% from 1999.

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

In 2000, 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 allocated only one-quarter of their budgets to food and shelter, and 30% to personal income taxes. These proportions were unchanged from 1999.

The total expenditure of the one-fifth of households with the lowest incomes averaged $18,090, compared with $113,030 for the one-fifth of households with the highest incomes.

Household budget spent on four major categories by income quintile

2000

After adjusting for differences in household size, average spending per person was $14,890 for households in the lowest income quintile and $58,290 for households in the highest income quintile.

Average spending on food was an estimated $2,640 per person for the lowest income quintile and $4,980 per person for households in the highest income quintile. Similarly, spending on shelter was $4,630 per person for the lowest income quintile and $8,820 per person for the highest income quintile.

Average expenditure per person on four major categories by income quintile

2000

Spending on all types of insurance also increased

Homeowners reported spending $470 in 2000 on home insurance, a 4% increase over 1999. There was a similar increase in spending on vehicle insurance. Vehicle owners spent $1,140 to insure their vehicles, compared with $1,090 in 1999.

For the 53% of Canadian households reporting spending on health insurance premiums, the average expenditure rose 12% to $790 in 2000. Health insurance premiums include payments to public hospital, medical and drug plans which are levied in some provinces and for some groups of the population. They also include payments to private plans that provide dental, accident, disability and travel coverage.

For the 74% of households contributing to either the Canada Pension Plan or the Quebec Pension Plan, the average amount paid in 2000 rose to $1,570, up from $1,390 in 1999. Payments on Employment Insurance premiums, however, fell a slight 2% to $1,040.

Average household spending highest in Ontario and Alberta

In 2000, Ontario and Alberta households had the highest average expenditure of all provinces. Newfoundland continued to have the lowest average, $43,240.

Average household expenditure by province

Two tables presenting summary-level household spending data are available free on Statistics Canada's Web site (): one for Canada and the provinces and one for selected metropolitan areas. A table presenting dwelling characteristics and household equipment is also available. On the Canadian statistics page, see The people, then choose Families, households and housing, then Expenditures or Housing.

For the first time, summary-level household spending data for Canada and provinces for 1997 to 2000 are available on CANSIM.

Available on CANSIM: table 2030001.

A User guide for the Survey of Household Spending (62F0026MIE2001004, free) presenting information about survey methodology, concepts, and data quality is available free on Statistics Canada's Web site. On the Our products and services page, choose Research papers (free), then Personal finance and household finance, then Household expenditures research paper series.

Ten detailed tables are available at $125 each. Of these ten tables, five present detailed household spending data: Canada, provinces and selected metropolitan areas (62F0031XDB); Household income quintile, Canada and provinces (62F0032XDB); Housing tenure, Canada (62F0033XDB); Household type, Canada (62F0034XDB); and Size of area of residence, Canada (62F0035XDB).

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

Custom tabulations are also available. A public-use microdata file is scheduled for release in May 2002, and a publication will follow in June 2002.

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).