Decline household consumption less substantial

30/08/2012 09:30

Household spending on goods and services was 0.6 percent down in June 2012 on June 2011.The decline was far less substantial than in the previous months. This was partly due to a change in tax legislation effective from 1 July, making new cars more expensive. Many consumers anticipated this change and decided to purchase a new car in June. Had spending on new cars remained stable, the decline in household consumption would have been 0.5 percentage points higher. Consumption figures have been adjusted for price changes and differences in the shopping-day pattern.

Spending on durable consumer goods in June was only marginally below the level of June 2011 (-0.2 percent). In the preceding months, consumer spending on these cyclically sensitive goods had been far lower than twelve months previously. Apart from buying new cars, consumers also spent more on consumer electronics. Home furnishing articles, clothing and household articles, on the other hand, were less in demand.

Spending on food, drinks and tobacco was down by 0.2 percent, just as spending on services. Spending on other goods, among which motor fuels, decreased particularly strongly with 3.7 percent.

The Household Consumption Radar shows the conditions for household consumption. These conditions deteriorated somewhat in August.

Domestic household consumption (volume, adjusted for shopping-days)

Domestic household consumption (volume, adjusted for shopping-days)

More figures can be found in dossier Business cycle.