Household spending up by 46%

WHETHER it’s food, clothes, alcohol or household goods, as a nation we shop ’til we drop.

Yesterday the Central Statistics Office (CSO) published the results of the 1999/2000 Household Budget Survey, which shows the average home spent €577.72 a week, 46% more than five years earlier.

Over the same period, incomes rose by 53%.

"What it reflects is that, as people earned more money, they had bigger choices and they spent more,'' said CSO spokesperson Kevin McCormack.

The survey of 7,644 households reveals some dramatic increases in weekly spending in some areas transport up 67% to €94.92, alcohol/tobacco up 45% to 44, food up 31% to 117, clothing/footwear up by 39% to 35 and fuel/light up by 11% to 22.

Urban households spent the most, €612.53 a week, while rural non-farm households spent the least, with a weekly average of 510.18.

Low-income households spent more on food 29% of their total spending compared with only about 16% in the highest income households.

On the other handTransport and services costs accounted for up to half of total expenditure in households with high incomes compared with about 30% in those with the lowest incomes.

Huge gaps in spending between the wealthiest and poorest people are also highlighted in the survey.

Those in the highest income bracket spent on average €1,213.26 a week, which is over more than twice the national average expenditure of all households.

By comparison, low income households spent an average of €144.09, just under a quarter of the average for all households.

Households in Dublin had the highest average weekly expenditure of 684.06 in 1999/2000, almost 50% more than the €462.86 recorded five years earlier. The southeast region had the lowest spending of €488.62, around 72% of the Dublin level.

Not surprisingly, mortgage holders had the highest costs when compared with people renting a house from local authorities; 767.40 against 306.99.

Consumers' Association of Ireland chief executive Dermot Jewell said the spending increases were very large.

"Such spending levels reflect the high level of confidence that people had in the economy. It will be interesting to see what happens as confidence declines and people find they don't have as much money to spend,'' he said.