1370.0 - Measures of Australia's Progress, 2010  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 15/09/2010   
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Household economic wellbeing

HOUSEHOLD SECTOR CONSUMPTION

Income and wealth are both used to fund the consumption of household goods and services. Household consumption relates to household economic wellbeing in that it measures the acquisition of goods and services used for the direct satisfaction of individual or collective wants and needs. Household sector consumption is measured by real household sector final consumption expenditure (FCE) per capita.

Over the decade 1999-2009, real household sector FCE per capita grew by an average of 1.9% per year.

Expenditure (as measured by real household FCE) on communication showed particularly strong growth, with an average of 4.3% per year. This partly reflects the increasing availability and use of both mobile phones and the Internet. Expenditure on furnishing and household equipment, and health, also grew strongly with average annual growth of 4.0% and 3.1% respectively. Recreation and culture was another area which saw strong growth, with an average annual growth rate of 3.1% over the period. However, this category includes significant expenditures by non-profit institutions such as churches and social and sporting clubs.

The share of real household sector FCE on items that could be considered essentials for daily life (food, clothing, housing and utilities) fell over the same decade, from 36% to 34%. The only decrease in average expenditure per capita was on alcoholic beverages and tobacco, falling at an average rate of 0.3% per year.

Household sector real final consumption expenditure(a) per capita


1999
2009
Annual average growth rate
$
$
%

Food
2 914
3 223
0.9
Alcoholic beverages and tobacco
1 101
1 066
-0.3
Clothing and footwear
836
1 038
2.0
Rent and other dwelling services
4 443
5 263
1.6
Electricity, gas and other fuel
523
610
1.4
Furnishings and household equipment
1 013
1 557
4.0
Health
1 149
1 611
3.1
Transport
3 129
3 381
0.7
Communication
533
849
4.3
Recreation and culture
2 430
3 398
3.1
Education services
811
1 004
2.0
Hotels, cafes and restaurants
1 808
2 038
1.1
Miscellaneous goods and services
3 871
4 973
2.3
Total
24 451
30 011
1.9

(a) Chain volume measure: reference year 2007-08.
Source: ABS Australian System of National Accounts, 2008-09 (cat. no. 5204.0); ABS Australian Demographic Statistics, June 2009 (cat. no. 3101.0)

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