New Zealanders have changed their household spending patterns as the cost of living has increased, according to data released by Stats NZ today.
Household expenditure data collected by the Household Economic Survey is made up of 13 different groups, 12 main expenditure groups (including food, recreation and culture, and health), and one 'sales, trade-ins, and refunds' group. The 12 main expenditure groups can be expressed as proportions of the total net expenditure (which is expenditure after deductions from sales, trade-ins, and refunds). Half of the 12 main expenditure groups have increased between the years ended June 2019 and 2023:
- food - up 28.1 percent (to $300 per week)
- housing and household utilities - up 15.5 percent (to $398 per week)
- health - up 18.5 percent (to $50 per week)
- transport - up 16.5 percent (to $252 per week)
- miscellaneous goods and services (which includes expenditure on insurance, personal care, and credit services) - up 21.6 percent (to $139 per week)
- other expenditure (which includes contributions to savings and interest payments) - up 31.4 percent (to $176 per week).
Combined, these six groups account for 82.2 percent of total household expenditure in the year ended June 2023.
"The increase in total household expenditure between 2019 and 2023 is a reflection of the increased cost of living experienced by New Zealanders, due to global events such as the COVID-19 pandemic and extreme weather events," wealth and poverty statistics senior manager Victoria Treliving said.
As a proportion of their weekly household expenditure, between the years ended June 2019 and 2023, households spent:
- less on communication (which includes postal services, internet, and cell phones)
- less on recreation and culture (which captures expenditure on things such as hobbies, sports, and travel), and
- more on food and other expenditure.
| Expenditure group | 2019 |
| Education | 1.4 |
| "Alcoholic beverages | 2.2 |
| tobacco | 2.9 |
| and illicit drugs " | 2.7 |
| Communication | 3.1 |
| Clothing and footwear | 3.8 |
| Health | 9.6 |
| Household contents and services | 8.5 |
| Recreation and culture | 9.9 |
| Miscellaneous goods and services | 16.0 |
| Other expenditure | 17.3 |
| Transport | 25.5 |
| Food | |
| Housing and household utilities |
| 1.2 | 1.7 |
|---|---|
| 2.0 | 2.3 |
| 2.6 | 3.1 |
| 2.5 | 3.0 |
| 2.8 | 3.4 |
| 3.5 | 4.1 |
| 8.9 | 10.4 |
| 8.1 | 8.8 |
| 9.3 | 10.5 |
| 15.3 | 16.7 |
| 16.8 | 17.8 |
| 24.6 | 26.5 |
| Expenditure group | 2023 |
| Education | 1.2 |
| "Alcoholic beverages | 2.0 |
| tobacco | 2.5 |
| and illicit drugs " | 2.7 |
| Communication | 3.1 |
| Clothing and footwear | 3.6 |
| Health | 8.3 |
| Household contents and services | 8.7 |
| Recreation and culture | 11.0 |
| Miscellaneous goods and services | 15.8 |
| Other expenditure | 18.7 |
| Transport | 24.9 |
| Food | |
| Housing and household utilities | |
| 1.0 | 1.5 |
|---|---|
| 1.8 | 2.1 |
| 2.4 | 2.6 |
| 2.4 | 2.9 |
| 2.8 | 3.4 |
| 3.3 | 3.8 |
| 7.9 | 8.8 |
| 8.4 | 9.0 |
| 10.5 | 11.5 |
| 14.9 | 16.6 |
| 18.3 | 19.2 |
| 24.1 | 25.7 |
As a proportion of total net household expenditure, recreation and culture decreased to 8.3 percent in the year ended June 2023 (down from 9.6 percent). The proportion of expenditure spent on communication decreased to 2.5 percent of total net household expenditure (down from 2.9 percent).
"While households have spent more on essentials such as food and interest payments, we are also seeing more households prioritising personal contributions to their saving schemes," Treliving said.
The proportion of household expenditure on food accounts for 18.7 percent of total net household expenditure in the year ended 2023, up from 17.3 percent in 2019.
Proportional spending on other expenditure increased to 11.0 percent of total net household expenditure (up from 9.9 percent). More specifically, in 2023, household expenditure on interest payments increased by 17.0 percent, and contributions to savings by 63.8 percent.
Note
The expenditure data interval between the year ended June 2019 and the year ended June 2023 is a four-year gap, rather than the typical three-year gap of this series. The difference is due to the postponement of data collection for the year ended June 2022 Household Economic Survey in response to COVID-19 restrictions. Therefore, the change in the four years may be greater than for the typical three-year gap. Apply caution when comparing trends.
