Households spending more on services

19/09/2006 14:00

More than half of domestic expenditure by households in 2005 was spent on services like housing, medical care, insurance, telephone and hotels and restaurants. In 1995 these services accounted for 48.5 percent of household spending.

Share of goods and services in domestic consumption

Share of goods and services in domestic consumption

Strong increase in spending on services

Spending on services rose by more than 80 percent between 1995 and 2005, to nearly 133 billion euro. Spending on goods amounted to just over 113 billion euro in 2005, 50 percent more than in 1995. The strong increase in spending on services was partly caused by the larger rise in the prices of services compared with price increases of goods. Prices of services rose by 34 percent in this period, those of goods by 20 percent on average. After corrections for these increases, consumption of services rose by 37 percent, consumption of goods by 23 percent.

Larger share of spending on communication

The largest item in spending on services is housing. Of every 1000 euro consumers spent on services in 2005, just over 160 euro was spent on housing.
The share of spending on communication (post, telephone and the Internet) rose strongly in the space of ten years. In 1995 this category accounted for 21 euro of every 1000 euro of consumer spending, by 2005 this had doubled to more than 40 euro.
The share consumers spent on hotels, restaurants and pubs, and other services such as cycle repairs and hairdressers decreased. Out of every 1000 euro, 6 euro less was spent on hotels, restaurants, etc. and 5 euro less on other services.

Consumer spending per 1000 euro

Consumer spending per 1000 euro

Share of food down in spending

The share of spending on goods fell between 1995 and 2005, from over 51 percent to 46 percent. In 1995, 165 out of every 1000 euro was spent on food, drink and tobacco. In 2005 this was 136 euro. In the same period spending on durable goods fell from 212 euro per 1000 euro to 187 euro. The share of spending on other goods remained unchanged in this period.

Jan van Ingen Schenau