Spending on housing has increased, but residents have significantly cut back on life insurance and pension contributions.

That is according to the Department of Statistics, which yesterday released the 2006 Personal Consumption Patterns report which showed that household consumption rose six percent in 2006 to $2.6 billion.

However it noted "all major components of household consumption increased with the exception of spending on life insurance and pension services, which declined by 11 percent".

The report attributed the rise in household spending on "the rise in gross earnings, expanded job opportunities and increased price movement of goods and services" and said that employment increased by approximately $2,500 between 2005 and 2006.

Residents continued to spend more on housing than any other sector, with approximately 34 percent of their earnings going to securing housing.

This was an increase of five percent, or $37 million, compared to housing costs in 2005. In total residents spent $777 million on housing in 2006. The report attributed the rise in housing expenditure to an increase in rent across the Island by five percent.

However consumers spent 11.4 percent less on life insurance and pension funds in 2006, similar to the US where consumers spent 15 percent less on the items than in 2005.

"Much of this decline was fuelled by an eight percent decrease in the number of premiums received for life insurance policies," the report said.

More than $102 million was spent on private education, an increase of eight percent.

"A large part of this increase is attributed to the depreciated US dollar and its impact on overseas tuition costs," the report said. "In 2006 the average value of the Canadian dollar rose 6.8 percent over the US dollar making it more expensive to study overseas. "

Residents also spent two percent of their household consumption on alcohol - only one percent more than they spent on clothing and shoes, which accounted for three percent of their household consumption.

Transportation accounted for nine percent while health care accounted for five percent of their household consumption.