2005 <strong>Household</strong> <strong>Income</strong> <strong>and</strong> <strong>Expenditure</strong> <strong>Survey</strong> <strong>Report</strong>3.2.5. Average <strong>Household</strong> <strong>Expenditure</strong>The estimated average annual household expenditure for FSM was estimated at about $13,000 (Table 16).The average household expenditure was highest in Yap <strong>and</strong> lowest in Chuuk. Average annual householdexpenditure in Yap was about $6,900 more than that of Chuuk.In 2005, the average FSM household spends about $5,000 on food. The high average spending on giftsreflects the resource-sharing nature of FSM households <strong>and</strong> their traditional practices. Average annualhousehold spending on transportation <strong>and</strong> communication was third behind food <strong>and</strong> housing for Yap <strong>and</strong>Chuuk, due in part to the widespread nature of their outer isl<strong>and</strong>s.Table 16. Average Annual <strong>Household</strong> <strong>Expenditure</strong> by <strong>Expenditure</strong> Group <strong>and</strong> State (<strong>Report</strong>ing <strong>Household</strong>s): 2005Average expenditure<strong>Expenditure</strong> group Total Yap Chuuk Pohnpei KosraeTotal 12,829 17,640 11,398 12,936 11,778Food 5,073 6,934 5,421 4,095 4,523Housing, <strong>Household</strong> maintenance, Repairs & Operations 2,229 3,268 1,906 2,243 2,124Transportation & Communication 1,772 2,750 1,792 1,498 1,546Gifts 1,501 1,466 1,351 1,774 728Furniture, Equipment & Accessories 866 1,145 791 854 744Education 804 2,129 1,018 412 83<strong>Income</strong> Tax 767 740 569 929 779Alcohol, Tobacco, Sakau & Betelnut 734 1,431 473 734 465Fuel, Light & Water 684 988 567 730 632Medical Care 620 859 513 622 530Clothing & Footwear 585 486 494 719 550Recreation 538 621 503 526 502Others 552 556 437 670 525Source: 2005 HIESTable 17 shows that the average spending of households in the lower income classes is less than thespending of those in the higher income classes. The average expenditure of households in the $50+thous<strong>and</strong> class is at least three times of households below $10 thous<strong>and</strong> class. Average household spendingamong the income classes vary more notably in Yap than the other states.Table 17. Average Annual <strong>Household</strong> <strong>Expenditure</strong> by <strong>Income</strong> Class <strong>and</strong> State: 2005Average Annual <strong>Expenditure</strong><strong>Income</strong> Class Total Yap Chuuk Pohnpei KosraeTotal 12,829 17,640 11,398 12,936 11,778Less than 2,500 4,636 6,490 3,409 5,515 4,4472,500 - 3,999 6,000 8,676 5,154 6,552 7,1124,000 - 5,999 7,633 8,630 7,658 7,243 7,9976,000 - 9,999 10,168 12,372 9,774 9,518 12,52810,000 - 14,999 12,574 13,962 12,690 12,097 10,95415,000 - 19,999 15,935 21,856 15,712 14,152 14,38420,000 - 29,999 20,343 22,199 20,937 19,647 17,80430,000 - 49,999 27,323 32,089 29,184 25,309 20,19150,000 <strong>and</strong> over 40,109 76,351 42,286 33,959 12,442Source: 2005 HIESThe average expenditure of male-headed households was about $13,200 compared to the $11,300 forfemale-headed households. The difference between average household expenditure by household type wasgreatest in Kosrae.Additionally, households with non-FSM ethnic householders had higher average expenditure (at $18,300)than those with FSM ethnic householders (about $12,600).Division of Statistics,14 Office of Statistics, Budget & Economic Management, Overseas Development Assistance, <strong>and</strong> Compact Management
2005 <strong>Household</strong> <strong>Income</strong> <strong>and</strong> <strong>Expenditure</strong> <strong>Survey</strong> <strong>Report</strong>Table 18. Average <strong>Household</strong> <strong>Expenditure</strong> by Sex <strong>and</strong> Ethnicity of <strong>Household</strong>er <strong>and</strong> State: 2005Average household expenditureSex <strong>and</strong> Ethnicity of <strong>Household</strong>er Total Yap Chuuk Pohnpei KosraeSex of <strong>Household</strong>erMale 13,222 18,091 11,924 13,159 12,566Female 11,284 16,018 8,913 12,190 8,626Ethnicity of <strong>Household</strong>erFSM 12,594 17,287 11,342 12,633 11,729Non-FSM 18,259 21,523 20,857 16,775 15,189Source: 2005 HIES3.2.6. Per-capita <strong>Expenditure</strong>In 2005, the per capita expenditure for the entire country was $2,000 (Appendix B, Table 19). The percapita expenditure was highest in Yap at $$2,900 <strong>and</strong> lowest in Chuuk at $1,700.Table 19 shows that more than half (57%) of the households in the FSM had per-capita expenditure of lessthan $2,000. The proportion of households with per-capita income of less than $2,000 is highest in Chuukat about 67% <strong>and</strong> lowest in Yap ($37%).Table 19. Number of <strong>Household</strong>s by Per capita <strong>Expenditure</strong> <strong>and</strong> State: 2005Per capita <strong>Expenditure</strong> Total Yap Chuuk Pohnpei KosraeTotal 16,427 2,207 6,994 6,029 1,197Percent 100.0 100.0 100.0 100.0 100.0Less than 500 5.4 - 6.9 5.5 6.4500 - 799 9.7 4.0 12.1 8.4 12.1800 - 1,299 19.4 13.1 22.4 18.4 19.31,300 - 1,999 22.4 19.6 25.5 19.4 24.32,000 - 2,999 16.3 14.2 14.4 18.6 20.73,000 - 4,999 13.4 22.6 10.4 13.9 10.75,000 - 9,999 10.2 20.7 6.5 11.8 5.010,000 <strong>and</strong> over 3.2 5.8 1.8 4.1 1.4Source: 2005 HIESDivision of Statistics,Office of Statistics, Budget & Economic Management, Overseas Development Assistance <strong>and</strong> Compact Management 15