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01-29-2014, 02:52 PM
http://www.calgaryherald.com/business/Alberta+households+spend+most+Canada/9444086/story.html
CALGARY - Alberta households are the top spenders in Canada on goods and services, according to Statistics Canada.
The federal agency reported Wednesday that households in this province spent an average of $69,870 in 2012 followed by households in British Columbia at $58,808. The Canadian average was $56,279, up 2.0 per cent from 2011.
Alberta led the country as well in 2011 with average spending of $64,453.
Nationally, spending on shelter accounted for the largest share of this total at 28.1 per cent, followed by transportation (19.9 per cent), food (13.8 per cent), and clothing and accessories (6.2 per cent).
In Alberta, spending on shelter was 27.6 per cent followed by transportation (21.0 per cent), food (12.0 per cent) and clothing and accessories (6.6 per cent).
Albertans had the highest average spending on shelter at $19,309 compared with the national average of $15,811.
Households in Alberta reported the highest spending on food at $8,414.
Goods and services spending in Canada (2012) | Infographics
“Like the old adage says, the more you make, the more you spend. And not surprisingly, Albertans are doing just that. Today’s Stats Canada household spending numbers showcase that many Alberta households spend more than the average Canadian household on just about everything from gifts to shelter to taxes,” said Lesley-Anne Scorgie, a financial author in Calgary who has a book coming out this spring called Well-Heeled: The $mart Girl’s Guide to Getting Rich.
“This spending is precipitated largely by the thriving energy industry which fuels much of Alberta’s economy. Not only are there higher wages amongst those working in the energy industry and those working in non-energy organizations that meet the growing needs of Albertans, there are greater demands for goods and services in the province, which has driven up the prices of homes, restaurant meals, and so much more.”
But, higher prices don’t account for the total gap between spending in the rest of Canada versus Alberta, she said.
“Easy access to credit, due largely in part to higher incomes in Alberta, has facilitated significant overspending patterns amongst Albertans. According to an RBC survey released in October 2013, Albertans experienced the greatest jump in personal debt levels between 2012 and 2013 relative to the rest of Canada,” added Scorgie.
“What’s even more alarming is that relative to the median household income, Albertans contribute less to their pension and insurance programs than the average Canadian. It would truly be a huge personal financial win for Albertans if they could leverage the strength of their income earning ability to build their net worth – a combination of debt reduction and growth in assets. This would create greater options for their futures, both in terms of the quality and number of their choices.”
Ben Brunnen, an economic consultant in Calgary, said Albertans boast the highest wages in the country and we are the only province to have posted strong economic growth each year since 2010.
“These factors give Albertans both the purchasing power and the confidence to spend their money on consumer goods,” he said.
“While total retail spending in the province has consistently outpaced population and inflation growth since 2011, as a per cent of income we may be closer to the average for Canada. That said, record interprovincial migration numbers could be a key driver of consumer spending, as people need to purchase goods and services to set up their households when they move here.”
CALGARY - Alberta households are the top spenders in Canada on goods and services, according to Statistics Canada.
The federal agency reported Wednesday that households in this province spent an average of $69,870 in 2012 followed by households in British Columbia at $58,808. The Canadian average was $56,279, up 2.0 per cent from 2011.
Alberta led the country as well in 2011 with average spending of $64,453.
Nationally, spending on shelter accounted for the largest share of this total at 28.1 per cent, followed by transportation (19.9 per cent), food (13.8 per cent), and clothing and accessories (6.2 per cent).
In Alberta, spending on shelter was 27.6 per cent followed by transportation (21.0 per cent), food (12.0 per cent) and clothing and accessories (6.6 per cent).
Albertans had the highest average spending on shelter at $19,309 compared with the national average of $15,811.
Households in Alberta reported the highest spending on food at $8,414.
Goods and services spending in Canada (2012) | Infographics
“Like the old adage says, the more you make, the more you spend. And not surprisingly, Albertans are doing just that. Today’s Stats Canada household spending numbers showcase that many Alberta households spend more than the average Canadian household on just about everything from gifts to shelter to taxes,” said Lesley-Anne Scorgie, a financial author in Calgary who has a book coming out this spring called Well-Heeled: The $mart Girl’s Guide to Getting Rich.
“This spending is precipitated largely by the thriving energy industry which fuels much of Alberta’s economy. Not only are there higher wages amongst those working in the energy industry and those working in non-energy organizations that meet the growing needs of Albertans, there are greater demands for goods and services in the province, which has driven up the prices of homes, restaurant meals, and so much more.”
But, higher prices don’t account for the total gap between spending in the rest of Canada versus Alberta, she said.
“Easy access to credit, due largely in part to higher incomes in Alberta, has facilitated significant overspending patterns amongst Albertans. According to an RBC survey released in October 2013, Albertans experienced the greatest jump in personal debt levels between 2012 and 2013 relative to the rest of Canada,” added Scorgie.
“What’s even more alarming is that relative to the median household income, Albertans contribute less to their pension and insurance programs than the average Canadian. It would truly be a huge personal financial win for Albertans if they could leverage the strength of their income earning ability to build their net worth – a combination of debt reduction and growth in assets. This would create greater options for their futures, both in terms of the quality and number of their choices.”
Ben Brunnen, an economic consultant in Calgary, said Albertans boast the highest wages in the country and we are the only province to have posted strong economic growth each year since 2010.
“These factors give Albertans both the purchasing power and the confidence to spend their money on consumer goods,” he said.
“While total retail spending in the province has consistently outpaced population and inflation growth since 2011, as a per cent of income we may be closer to the average for Canada. That said, record interprovincial migration numbers could be a key driver of consumer spending, as people need to purchase goods and services to set up their households when they move here.”