Alberta leads country in household spending

Albertans topped the country with the highest average spending on goods and services in 2010, according to Statistics Canada.

The federal agency reported Wednesday that average spending in Alberta households was $61,134.

This was followed by households in British Columbia at $56,812. Households in Prince Edward Island ($44,856) reported the lowest spending, said Statistics Canada.

“Employment and wage growth are contributing to household spending in Alberta,” said Lai Sing Louie, regional economist in Calgary with Canada Mortgage and Housing Corp.

“In the past year, Alberta has created close to 94,000 full-time jobs. Also, high household incomes in Alberta relative to other provinces tend to make spending here higher. It is prudent to spend within the means of a household.”

Ben Brunnen, chief economist with the Calgary Chamber of Commerce, said it makes sense that Albertans are the highest spenders in the country.

“Albertans’ balance sheets have actually strengthened relatively well over the last 12 to 18 months or so largely as a result of higher incomes,” Brunnen said. “Our debt-to-income ratios are almost at 20-year lows. Our consumer bankruptcies are at the point in time where they were before the boom. Business incorporations are high. And consumer confidence is at its highest point since 2008.

“All of these factors suggest that Albertans are going to be in a spending mood. There’s also increased optimism about the future. Alberta consumers are very positive about future unemployment. They’re positive about future income levels and as a result of that I think we see that manifesting itself in the spending.”

Brunnen said there is no evidence to suggest spending in the province will subside in the near future.

Statistics Canada said Canadian households spent an average of $53,016 on all types of goods and services in 2010.