Household spending in 2006 continued to show the effects of the strong resource economy in the West, Statistics Canada reported today.

Spending growth in Alberta surpassed all other provinces by a wide margin, the government agency said.

On average, each Canadian household spent $48,770 on goods and services, up 4.6% from 2005. This was above the inflation rate of 2.0% as measured by the Consumer Price Index.

Average household spending in Alberta for goods and services increased by 14% over 2005 to $59,740, the largest year-over-year increase for one province ever recorded by this survey. Prince Edward Island showed the second largest growth (up 8%) from the previous year. Saskatchewan and Quebec also reported growth above the national average.

The slowest growth in spending on goods and services was in Manitoba, where it rose by only 1%, and in Ontario where this figure grew by just under 2%.

Newfoundland and Labrador still reported the lowest average household spending on goods and services in 2006 at $39,520. Basics still account for largest shares

The largest shares of Canadian household budgets were for personal taxes (20%), shelter (19%) and transportation (14%).

Personal taxes increased slightly to an average of $13,630. However, at 20% of the average household budget this represented the lowest share since the 1992 survey.

Spending on shelter rose 5% to an average of $12,990, largely the result of increases in spending of 14% in Alberta, 7% in Saskatchewan, and 6% in British Columbia. Shelter costs in Alberta rose by 10% in 2006, according to the CPI.

Household spending on transportation rose 4% at the national level, to an average of $9,240, but at the provincial level, trends varied widely. Households in Alberta spent an average of $12,160 on transportation, up 19% from 2005. Spending on vehicle purchases alone was up 22% over the previous year in this province.