You are here: Environmental reporting 
Household consumption Expenditure
Total household consumption expenditure
Current situation
In the year ending March 2008, real household consumption expenditure in New Zealand was $82.1 billion. On average, real household consumption expenditure per household was $53,943, and real household consumption expenditure per person was $19,350.
Long-term trend
Between 1992 and 2008, New Zealand’s total household consumption expenditure increased by 76 per cent. In the same period, household consumption expenditure per person increased by 46 per cent, and household consumption expenditure per household increased by 39 per cent.
Real household consumption expenditure, 1992 and 2008 (year ending March, 1995/96 prices)
Household consumption expenditure |
1992 |
2008 |
Percentage change between 1992 and 2008 |
|---|---|---|---|
Total expenditure ($ million) |
46,549 |
82,065 |
76% |
Per household ($) |
38,829 |
53,943 |
39% |
Per person ($) |
13,278 |
19,350 |
46% |
Source: Statistics New Zealand.
Household consumption expenditure per person
In the period 1992–2008, New Zealand’s population increased by 21 per cent. Although this increase in population accounts for some of the increase in total household consumption expenditure noted above, it does not account for all of it.
Between 1992 and 2008, per person household consumption expenditure increased by 46 per cent (or $6,072). This means that, on average each New Zealander is consuming more goods and services than in the past. This is consistent with what has happened in other Organisation for Economic Co-operation and Development (OECD) countries – per capita private consumption has increased steadily in OECD countries over the last two decades.
Real household consumption expenditure, 1992–2008 (year ending March, 1995/96 prices, 1992 = 100)
Source: Statistics New Zealand.
Household consumption expenditure per household
Between 1992 and 2008, the number of households in New Zealand increased by 27 per cent. Again, this trend accounts for some of the increase in total household consumption expenditure, but not all of it.
Between 1992 and 2008, household consumption expenditure per household increased by 39 per cent (or $15,114). This means that, on average, each household in New Zealand is consuming more goods and services now than in the past.
Household consumption expenditure and GDP expenditure
Economic growth and household consumption expenditure are closely linked – household consumption expenditure is a large component of GDP expenditure.
Between 1992 and 2008, real GDP expenditure and real household consumption expenditure both increased, but at different rates – real GDP expenditure increased by 73 per cent, while real household consumption expenditure increased by 76 per cent. As expected, household consumption expenditure increased as GDP expenditure increased, but since 2005, household consumption expenditure has increased at a faster rate than GDP expenditure.
Not only are New Zealand households (on average) consuming a greater volume of goods and services than in the past, they are accounting for an increasing share of GDP expenditure than in the past.
Real household consumption expenditure and real GDP expenditure, 1992–2008 (year ending March, 1995/96 prices, 1992 = 100)
Source: Statistics New Zealand.
Recent trend
Between 2006 and 2008, total household consumption expenditure in New Zealand increased, as did household consumption expenditure per person and per household. However, the rate of increase has slowed compared to the two years before. For example, between 2004 and 2006, total household consumption expenditure increased by 9.8 per cent, while between 2006 and 2008, it increased by 6.1 per cent.
Household consumption expenditure is also reported quarterly by Statistics New Zealand. In the March 2008 quarter, total household consumption expenditure decreased by 0.5 per cent - the first quarterly decline since the June 2004 quarter.
International comparison
In 2006, New Zealand’s household consumption expenditure was US$15,300 per person - 11 per cent less than the OECD average of US$17,000. Overall, New Zealand had the 8th lowest household consumption expenditure per person out of 29 OECD member countries. The United States had the highest household consumption expenditure per person in the OECD, at more than twice that of New Zealand.
Household consumption expenditure per person among OECD countries, 2006 (current prices)
Note: Numbers on the x-axis represent a ranking among 29 OECD countries.
Source: Organisation for Economic Co-operation and Development.
Countries with similar per person household consumption expenditure to New Zealand in 2006 included Sweden and Finland. Looking to our closest OECD neighbour, Australia’s household consumption expenditure per person in 2006 was 29 per cent higher than that of New Zealand, and Australia had the 8th highest household consumption expenditure per person in the OECD.
While having the 8th lowest household consumption expenditure in the OECD may be considered good from an environmental perspective, it may not be considered good from a social perspective (in terms of people’s standard of living) or from an economic perspective.
What can you do?
- Fix any water leaks around the home – a leaky tap that drips every second can waste up to 10,000 litres of water a year.
- Inflate your tyres correctly and you'll use up to 5 per cent less fuel.
- Look out for products with ‘eco-friendly’ labelling, such as the Environmental Choice label.
- Recycle at home – one recycled aluminium can saves enough electricity to run a TV for three hours.
Take your next step towards sustainability at sustainability.govt.nz
This information has come from the Household Consumption Expenditure environmental report card.
Last updated: 24 August 2009
