Household consumption nearly 3 percent up in June

According to figures released by Statistics Netherlands (CBS), Dutch household consumption was 2.8 percent up in June 2018 over June 2017. The growth rate was more substantial than in the previous month. In June 2018, consumers mainly spent more on durable goods, such as cars and electrical appliances.

The CBS Consumption Radar shows that circumstances for Dutch household consumption in August are, on balance, about as favourable as in June.

Consumption figures are adjusted for price changes and differences in the shopping-day pattern.

Domestic household consumption (volume, adjusted for shopping days) (year-on-year % change)
 Change
2014 July0.3
2014 August1.5
2014 September-0.5
2014 October0.3
2014 November0.7
2014 December0.6
2015 January2
2015 February2
2015 March2.1
2015 April1.7
2015 May1.3
2015 June2.3
2015 July1.5
2015 August1.4
2015 September2.2
2015 October1.7
2015 November0.8
2015 December0.8
2016 January0.7
2016 February0.4
2016 March1.1
2016 April0.4
2016 May1.9
2016 June0.7
2016 July2.4
2016 August1.5
2016 September1.1
2016 October2.6
2016 November2.8
2016 December2.5
2017 January3.4
2017 February1.5
2017 March1.7
2017 April2.6
2017 May2.5
2017 June2.3
2017 July2.2
2017 August1.9
2017 September2.6
2017 October1.8
2017 November2.4
2017 December1.3
2018 January1.7
2018 February2.9
2018 March3
2018 April3
2018 May1.9
2018 June2.8

Dutch households mainly spend more on cars and electrical appliances

In June 2018, consumer spending on durable goods, such as cars and electrical appliances, was up by over 4 percent. In addition, consumers spent over 3 percent more on the category ‘other goods’, such as energy and water. Spending on food, beverages and tobacco was over 2 percent up year-on-year.

Last week, CBS already reported that retail turnover was 3 percent up in June year-on-year. The volume of sales increased by nearly 3 percent. This figure was also adjusted for the shopping-day pattern.

Lastly, consumer spending on services - accounting for over half of total domestic consumer expenditure - rose by over 2 percent in June 2018. These services include house rent, public transport, visits to restaurants or hairdressers and insurance premiums.

Domestic household consumption by category (volume, adjusted for shopping days), June 2018 (year-on-year % change)
 change
Durable consumer goods4.4
Other goods (e.g. gas)3.2
Services2.4
Food,drinks and tobacco2.3
Total2.8

Consumer climate in August as favourable as in June

CBS publishes figures about circumstances for household consumption on a monthly basis in the CBS Consumption Radar. Household consumption is affected by consumers’ expectations, their personal financial situation and developments on the labour market. Although the Radar indicators show a strong correlation with household consumption, improved circumstances are not necessarily translated into increased growth.

According to the CBS Consumption Radar, circumstances for Dutch household consumption in August are more or less as favourable as in June. The year-on-year rise in share prices was larger in August’s radar. On the other hand, the growth of the employed labour force was smaller than in June.

The figures presented in this news release are provisional and can be adjusted.

Sources

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