Household spending continuously in decline

19/07/2013 09:30

Household spending on goods and services was 1.8 percent down in May 2013 from May 2012. Consumer spending has been in an almost continuous decline for two years now. Household spending on durable goods fell dramatically. Consumption figures have been adjusted for price changes and differences in the shopping-day pattern.

As a result of the relatively cold weather, households used more natural gas in May this year than in May 2012, which had a positive effect on consumption. Households spent 8.7 percent less on durable items than twelve months previously. Car sales dropped dramatically, but spending on clothing, shoes, home furnishing , household articles and household appliances also declined. Spending on food, drinks and tobacco was down by 2.5 percent. Household spending on services was 0.2 percent lower.

By means of six indicators, the Household Consumption Radar shows whether circumstances for Dutch household consumption have become more or less favourable. July’s Household Consumption radar shows that circumstances for consumption have deteriorated relative to June.

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.

For more information on economic indicators, the reader is referred to the Economic Monitor.