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Calculated in 1996 kroner households have increased their overall consumption in the 1990s after declining at the end of the 1980s. The average household had a total consumption expenditure of NOK 218,538 in 1996. In 1996 kroner the average household in 1987 spent all of NOK 228,541. Consequently, it will take some time before the average household again reaches the spending level set 10 years ago. On the other hand the average household is smaller. Per capita consumption exceeded the 1987 level at the end of 1995.
Spending by private households has increased in recent years. The increase in consumption from 1995 to 1996 has occurred in all areas except for food for the average household. Spending has yet to top the record year of 1987, although per capita consumption is, however, higher than in 1987.
For some time now, Norwegians have been spending a smaller percentage of their disposable income on food, while housing and transport expenses have assumed a steadily more dominant place for households. The percentage spent on food is still declining and is now down to 13.3 per cent. This is not a factor of people eating less, but that higher consumption is being spent on other areas than food. People are also eating out more at restaurants and the like. In addition, the size of households is steadily decreasing.
Most for travel and transport
The survey showed that while housing, electricity and fuel made up the biggest expense from 1988 to 1995, claiming up to 26.4 per cent of expenses in 1989/1990, travel and transport have been the most dominant expense since 1995. This is because interest expenses on home loans have gone down with sinking interest rates. At the same time, many have increased their travel and transport expenses by purchasing a new car. The average household now spends 22.2 per cent of their expenses on travel and transport and 22.1 per cent on housing, electricity and fuel. Compared to other outlays, the relative significance of clothing and footwear expenses has dropped somewhat. While households spent 7.7 per cent on clothing and shoes in 1986 the percentage now appears to have stabilized at about 6.5 per cent. The average household spent NOK 14,087 on clothing and shoes in1996.
Weekly Bulletin issue no. 48, 1997