Family & Income Expenditure Survey 2006

1. National Statistics Office
1
2006
Family Income
and
Expenditure
Survey
NSO Training Room
March 10, 2008

2. OUTLINE
 Background
 Highlights
National Statistics Office
2

3. What is the Family Income and
Expenditure Survey (FIES)?
 A nationwide survey of households
 Undertaken every three years as rider to
the Labor Force Survey, since 1985
 Gathers data on family income and family
expenditure
Background
National Statistics Office
3

4. Objectives of FIES
 To gather data on family income and family
expenditures;
 To determine the sources of income, levels of
expenditure and spending patterns, and
related information affecting income
distribution and expenditure levels;
 To determine income distribution and the
degree of inequality among families;
Background
National Statistics Office
4

5.  To provide benchmark information to update
weights in the estimation of consumer price
index (CPI); and
 To provide inputs in the estimation of the
country’s poverty threshold and incidence
Background
Objectives of FIES
National Statistics Office
5

6. Importance of FIES
 Updating of the weights used in the
Consumer Price Index
 Estimation of the household accounts
in the System of National Accounts
 Measurement of the human
development index
Background
National Statistics Office
6

7. What specific information is
included in FIES?
 Source (s) of family income, in cash or in kind
(ex. Wages, net receipts, gifts received)
 level of family consumption by expenditure items
(ex. Food, education, fuel, light, etc.)
 number of family members employed for pay or profit,
or as wage, salary or own-account workers
 housing characteristics of families
Background
National Statistics Office
7

8. P
SOURCES OF FAMILY INCOME
Gifts and assistance from abroad
and from domestic source
Dividends from investments
Imputed rental values of owner
occupied dwelling units
Interests, royalties
Rentals including landowner’s
share of agricultural products
Pensions
Receipts from family sustenance
activities
Salaries and Wages
Commissions/tips
Bonuses
Family and clothing allowances
Transportation and
representation allowances
Honoraria
Other forms of compensation
Net receipts/ profits derived from
operation of family operated
enterprises/ activities and
practice of profession or trade
Income from Other Sources
Primary Sources of Income
8
National Statistics Office

9. FAMILY EXPENDITURE
Food Non-Food
 Food consumed at home
Cereals and cereal preparations
Roots and tubers
Fruits and vegetables
Meat and meat preparations
Dairy products and roots
Fish and marine products
Coffee, Cocoa and tea
Non-alcoholic beverages
Food not elsewhere classified
 Food regularly consumed outside the
home
 Alcoholic beverages
 Tobacco
 Fuel, Light and Water
 Transportation and communication
 Household operation
 Personal care and effects
 Clothing, Footwear and other wear
 Education
 Recreation
 Medical care
 Non-durable furnishings
 Durable furniture and equipment
 Taxes
 Housing, House Maintenance and
Minor Repairs
 Miscellaneous expenditures
Special family occasion
Gifts and contributions to others
Other expenditures
 Other disbursements
National Statistics Office
9

10. National Statistics Office
10
2006
Family Income
and
Expenditure
Survey
Final
Results

11. Average Annual Family Income: 2003 & 2006
16.8%
2006 P 173,000
2003 P 148,000
National Statistics Office
11
No. of Families = 17,403 thousand (2006)
No. of Families = 16,480 thousand (2003)

12. Average Annual Family Income
National Statistics Office
 In 2006, the average annual family income was
estimated at P173 thousand, higher by 16.8 percent
than the 2003 estimated average of P148 thousand.
 Adjusting for the 2003 prices, the average
annual family income decreased by 3.7 percent
between 2003 and 2006.
Area 2003 2006
(Current)
2006
(at 2003 Prices)
Phil 148 T 173 T 142 T
3.7%
12
16.8%

13. Average Income by Decile at Current Prices: 2006 and 2003
National Statistics Office
13
0
100
200
300
400
500
600
700
First Decile Second Decile Third Decile Fourth Decile Fifth Decile Sixth Decile Seventh Decile Eighth Decile Ninth Decile Tenth Decile
I
n
t
h
o
u
s
a
n
d
s
2006 2003

14. Average Income at 2003 Prices: 2006 and 2003
National Statistics Office
14
0 100 200 300 400 500 600
Tenth
Ninth
Eight
Seventh
Sixth
Fifth
Fourth
Third
Second
First
D
e
c
i
l
e
2003 Ave Income
2006 Ave Income
In thousands

15. Average Expenditure by Decile at Current Prices:
2006 and 2003
National Statistics Office
15
0
100
200
300
400
500
600
700
First Decile Second Decile Third Decile Fourt h Decile Fif t h Decile Sixt h Decile Sevent h Decile Eight h Decile Nint h Decile Tent h Decile
I
n
t
h
o
u
s
a
n
d
s
2006 2003

16. Average Expenditure at 2003 Prices: 2006 and 2003
National Statistics Office
16
0 50 100 150 200 250 300 350 400 450
Tenth
Ninth
Eight
Seventh
Sixth
Fifth
Fourth
Third
Second
First
D
e
c
i
l
e
2003 Ave Expenditure
2006 Ave Expenditure
In thousands

17. Average Savings by Decile at Current Prices: 2006 and 2003
National Statistics Office
17
-20
0
20
40
60
80
100
120
140
160
180
First Decile Second
Decile
ThirdDecile Fourth
Decile
FifthDecile SixthDecile Seventh
Decile
EighthDecile NinthDecile TenthDecile
I
n
t
h
o
u
s
a
n
d
s
2006 2003
See next slide

18. National Statistics Office
18
Average Savings by Decile at Current Prices: 2006 and 2003
-3
-2
-2
-1
-3.5
-3
-2.5
-2
-1.5
-1
-0.5
0
I
n
t
h
o
u
s
a
n
d
s
2006 2003
0
First Decile Third Decile
0
Second Decile

19. Average Savings by Decile at 2003 Prices: 2006 and 2003
National Statistics Office
19
1
-2
-1
-0
118
34
17
9
6
3
-2
-1
0
151
41
23
14
8
5
3
0 20 40 60 80 100 120 140 160
Tenth
Ninth
Eight
Seventh
Sixth
Fifth
Fourth
Third
Second
First
D
e
c
i
l
e
In thousands
2006 Ave Savings 2003 Ave Savings
See next slide

20. Average Savings by Decile at 2003 Prices: 2006 and 2003
National Statistics Office
20
-1
-2
-1
-2
0
0
-2.5 -2 -1.5 -1 -0.5 0
2006 2003
Second
Decile
Third
Decile
First
Decile

21. National Statistics Office
21
Average Monthly Family Income,
Expenditure & Savings: 2006
P
P
P
14,400 Income
12,300 Expenditure
2,080 Savings

22. Total Annual Family Income
National Statistics Office
22
2003
2006
P 2.44Trillion
P 3.01Trillion

23. Area 2003 2006
(Current)
2006
(at 2003 Prices)
Phil P2.44 trillion P 3.01 trillion P2.48 trillion
Total Annual Family Income
National Statistics Office
Total annual family income in 2006 was estimated
at P3.01 trillion indicating an increase of 23.3
percent over the 2003 estimate of P2.44 trillion
The total family income in 2006 would be valued at
P2.48 trillion at 2003 prices which translates into an
increase in the total annual income by only 1.7
percent.
23.3 % 1.7 %
23

24. Total Annual Family Expenditure
National Statistics Office
Total annual family expenditure was approximately
P2.56 trillion, an increase of 25.7 percent over the
2003 estimate of P2.04 trillion
At 2003 prices, total family expenditure for 2006
would be valued at P2.11 trillion which translates into
an increase in total annual expenditure of only 3.6
percent.
Area 2003 2006
(Current)
2006
(at 2003 Prices)
Phil 2.04 trillion 2.56 trillion 2.11 trillion
25.7 % 3.6 %
24

25. Total Annual Family Saving: 2003 & 2006
Current At 2003 Prices
2006: P 445 B
2003: P 399 B
11.5 %
2006 : P 367 B
2003: P 399 B
8.02 %
25
National Statistics Office
The total annual family savings increased by
11.5 percent in 2006 at 2006 prices, but at
2003 prices it decreased by 8.02 percent

26. Pattern of Expenditure: 2006
National Statistics Office
26
Expenditure Items
All income
Classes
Lowest 30% Upper 70% Richest 10%
Total Expenditure 100.0 100.0 100.0 100.0
Food expenditure 41.4 59.1 39.3 28.7
Food consumed at Home 35.5 56.8 33.1 22.1
Food regularly consumed outside the home 5.8 2.3 6.2 6.6
Alcoholic beverages 0.7 1.2 0.6 0.4
Tobacco 0.9 1.7 0.8 0.4
Fuel light and water 7.6 7.3 7.7 7.1
Transportation and Communication 8.2 3.8 8.7 11.1
Household Operation 2.3 1.8 2.4 3.5
Personal Care and Effect 3.7 3.7 3.7 3.3
Clothing, Footwear and Other wear 2.4 2.0 2.5 2.6
Education 4.4 1.3 4.7 6.7
Recreation 0.5 0.2 0.5 0.8
Medical Care 2.9 1.7 3.0 4.0
Non-durable furnishing 0.2 0.2 0.2 0.2
Durable furniture and equipment 2.7 0.8 2.9 4.0
Taxes 1.6 0.2 1.8 3.2
House rental/Rental Value 12.7 9.0 13.2 14.8
House maintenance and minor repairs 0.5 0.5 0.6 0.6
Special family Occassions 2.8 1.7 2.9 3.2
Gifts and contribution to others 1.4 0.7 1.4 2.0
Other expenditure 3.0 3.3 3.0 3.7
Source: NSO, 2006 FIES Final Results
Percent Distribution of Expenditure Items by Income Classes: 2006

27. National Statistics Office
Food
28.6%
Fuel, Light &
H2O
7.1%
Trans & Comm
11.1%
Rental
14.8%
All Others
38.5%
All Others
21.0%
Food
59.0%
Fuel, Light
& H2O
7.3%
Trans &
Comm
3.8%
Rental
9.0%
ALL INCOME
CLASSES
BOTTOM 30%
UPPER 70%
RICHEST 10%
Food
41.4%
Fuel, Light &
H2O
7.6%
Rental
12.7%
Trans &
Comm
8.2%
All Others
30.0%
27
Trans &
Comm
8.7%
Fuel, Light &
H2O
7.7%
Rental
13.2%
All Others
31.0%
Food
39.3%

28. Gini Concentration Ratios by Region:
2003 & 2006
National Statistics Office
28
0
0.1
0.2
0.3
0.4
0.5
0.6
NCR CAR Reg I Reg II Reg III Reg
IVA
Reg
IVB
Reg V Reg VI Reg VII Reg VIII Reg IX Reg X Reg XI Reg XII Caraga ARMM
2003 2006
Philippines : 2003=0.4605
2006=0.4580

29. National Statistics Office
29
Estimate
Lower Limit
Upper Limit
Philippines
(In Billion)
3,080
3,006
2,930
Total Annual Family Income:2006

30. National Statistics Office
30
Average Annual Family Income by Region: 2006
50
100
150
200
250
300
350
N
C
R
C
A
R
I
I
I
I
I
I
I
V
A
I
V
B
V
V
I
V
I
I
V
I
I
I
I
X
X
X
I
X
I
I
C
a
r
a
g
a
A
R
M
M
Region
In
Thousands
Low er Limit
Estimate
Upper Limit
DATA at the Regional Level

31. National Statistics Office
31
Average Annual Family Expenditure
50
100
150
200
250
300
N
C
R
C
A
R
I
I
I
I
I
I
I
V
A
I
V
B
V
V
I
V
I
I
V
I
I
I
I
X
X
X
I
X
I
I
C
a
r
a
g
a
A
R
M
M
Region
In
Thousands
Low er Limit
Estimate
Upper Limit
DATA at the Regional Level

32. Visit our website
www.census.gov.ph
Ina & Je
National Statistics Office
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