Yen for spending grows faster than pay

People's spending grew faster than their incomes over the past three years, official figures show.

The average household income has risen 12.3 per cent since 2001 to $60,400 before tax, but spending rose 16.1 per cent to $46,200, Statistics New Zealand reported yesterday.

Wages and salaries, which make up more than two-thirds of household incomes, rose 18.2 per cent but other sources of income posted much more modest gains - 6.8 per cent from New Zealand Superannuation, 4.6 per cent from self-employment and 1.7 per cent from Government benefits.

Income from investment fell 12.4 per cent compared with three years ago.

In terms of what people spend their money on in the broad categories, there was almost no change.

Housing is the big-ticket item, taking 24c in every dollar.

Food and transport use up 16c apiece and household operation costs 13c.

The average household spends $142 a week on food, 13 per cent more than in 2001. But included in that figure is the amount spent on takeaways and eating out, which grew twice as fast, up 26 per cent to $36.80 a week.

Households collectively are paying 22 per cent more in rent than three years ago, while mortgage payments are up 18 per cent. This is reflected in declining rates of home ownership and increases in rent.

Spending on clothing and footwear rose 23 per cent over the three years, although it still represents just 3c in the dollar of what households spend.

Women spent nearly twice as much as men - $12.10 a week, compared with $6.50.

Seventy-one per cent of households have at least one cellphone, up from 59 per cent, and 62 per cent have a home computer, up from 47 per cent.

Pay-television is now in 37 per cent of homes, up from 30 per cent.