Households exceed consumer spending peak set in 1980s

Private household consumption, which fell in the beginning of this decade, was greater last year than the peak year of 1988. Last year, the average household spent NOK 236,198, compared to NOK 214,427 in 1988, calculated in 1997-kroner.

Household spending on consumption in 1996 also exceeded the peak year, but it was not until 1997 that the increase became significant.

Transport expenses are now the largest expense item, averaging NOK 58,502 per household in 1997 and accounting for 24.8 per cent of total expenditure. Families with children have the largest expenses. Households with children aged 7-19 spent an average of NOK 87,270 per year on travel and transport in 1996 and 1997, while couples without children spent NOK 58,684.

The second largest group of expenses for private households is housing. The decline in loan interest rates and interest expenses in recent years has, however, lowered housing, fuel and power expenses. Housing expenses accounted for NOK 50,342 in 1997. This is 21.3 per cent of total expenses, down from 26.4 per cent in 1990. Couples with children between the ages of 0 and six have the highest housing, fuel and power expenses, with NOK 65,708 in 1996-1997.

Food takes smaller share

A main trend for several years is that Norwegians are spending a smaller share of their total consumption expenditure on food, while housing and transport expenses have become increasingly more dominant for households. The proportion spent on food continues to sink and is now down to 12.6 per cent, with an average expenditure of NOK 29,834 in 1997. This means that while a quarter of household spending goes for transport, around half of that amount, an eighth, is spent on food. This does not mean that individuals are eating less, but that there is higher spending in other areas than food. More meals are also being eaten outside the home in restaurants, cafes etc. In addition, the size of households is steadily declining.

Buy more clothes and shoes

The percentage households spent on clothing and footwear has dropped from 7.5 per cent in 1987 to just over six per cent in 1997. During the same period, the amount has increased from NOK 13,860 to NOK 14,530 calculated in 1997-kroner. Since clothing and footwear prices have dropped simultaneously in recent years, this means that Norwegians are buying more clothing and shoes than the increased amount shows, even though clothing and shoes now account for a smaller share of the budget. Households with older children aged seven to 19 spent the most on clothing and shoes, an average of NOK 27,593 per year in 1996-1997, while couples without children spent NOK 13,079.

New Statistics
Survey of Consumer Expenditure, 1997.
The statistics are published annually in the Weekly Bulletin of Statistics. For more information contact: Anne. Lodberg-Holm@ssb.no, tel. +47 21 09 46 83, or Eiliv.Mork@ssb.no, tel. +47 21 09 46 93.

Weekly Bulletin issue no. 51, 1998