Modest consumption growth in May

According to figures from Statistics Netherlands, households spent 1.2 percent more on goods and services in May this year than in the same month last year. This growth is slightly smaller than in the previous months. The increase in spending on durable goods was modest in May compared with the first months of 2007.

Spending on durable goods only slightly up

Households spent only 0.5 percent more on durable goods in May than twelve months previously. The is the smallest increase in nearly two years. In previous months spending was substantially higher. In May consumers spent less on clothes and shoes in particular. In the preceding months, the volume of these goods purchased was substantially larger than twelve months previously. Moreover, as consumers spent a large amount on clothes and shoes in May last year, the level with which spending in May 2007 is compared is relatively high.

Spending on goods was about the same as in May last year, while spending on services was 2.2 percent higher. Services include spending on housing, transport, culture and in hotels and restaurants.

Consumption growth rate slowing down

The increase in domestic consumption was smaller in the first five months of 2007 than on average in 2006. This is mainly because of the lower gas consumption. As a result of the mild weather, households used less gas for heating than in the same period last year.