Household Economic Survey out in the community

Interviews are currently underway for the 2009/10 Household Economic Survey (HES), Statistics NewZealand said today.

The HES is a three-yearly survey that collects information on households’ spendingpatterns. Household purchases might range from fruit and vegetables to cars and appliances, as well asspending on health, recreation, and education services.

The HES also records household income andwhere that money comes from, such as salaries and wages, self-employment, investments, and benefits.

The information obtained on household spending is used to help revise the consumers price index (CPI),which measures changes in the prices of goods and services that people buy.

The Reserve Bank of New Zealand uses the CPI as one of its main information sources when deciding theOfficial Cash Rate.

The last HES, which was conducted in 2006/07, showed that 32 percent of households owned their housewith a mortgage, and the average mortgage payment was $271 per week. A further 29 percent ofhouseholds were paying an average rent of $220 per week.

“In light of economic developments over the past year, it is especially important to find out how incomelevels have changed since the last time the survey was conducted – and how this impacts on householdspending and housing affordability,” said Andrea Blackburn, Statistics NZ Manager.

HES data provides information that also supports many of the government’s decisions on social spending,such as how they could change benefit levels or whether to provide tax cuts.Around 4,500 households will be randomly selected to take part in the survey in 2009/10. Householdsselected will be asked to fill in an expenditure diary over a two-week period.

“We appreciate that we are asking people to give up some of their valuable time, but the information wecollect is important for New Zealand and for measuring our progress,” said Andrea.Survey results will be released at the end of 2010, and will be available from the Statistics NZ website,http://www.stats.govt.nz/