In March 2005 the volume of domestic household consumption was 0.2 percent down on the same month last year. The slightly reduced consumption level is entirely caused by a cutback in spending on durable goods. According to figures released by Statistics Netherlands, the cutback in spending is less sizeable than in January and February. The figures have been adjusted for price changes and the number of shopping days.
Less money spent on durable goods
Adjusted for price fluctuations and shopping days, household spending on goods in March 2005 was 1.1 percent down on March 2004. The decrease is entirely due to the cutback in spending on durable goods. Household spending on durable goods was 4.1 percent down on one year ago. Over the last two years the ongoing recession has had a detrimental effect on the consumption of durables. Spending on food, drinks, tobacco and other consumer nondurables, on the other hand, went up in March 2004. Consumers also spent more on services than one year previously.
Consumption down in first quarter
The volume of domestic household consumption was smaller in the first quarter of 2005 than one year previously. In the four preceding quarters the volume was always slightly larger than one year previously.
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