Household consumption nearly 3 percent up in July

The CBS Consumption Radar shows that circumstances for Dutch household consumption in September are, on balance, slightly less favourable than in July.

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

Dutch households mainly spend more on food, beverages and tobacco

In July 2018, consumer spending on food, beverages and tobacco was up by nearly 5 percent. In addition, consumers spent nearly 2 percent more on durable goods. Spending on cars was up in particular. However, consumers purchased fewer home furnishing articles and household articles. Spending on the category ‘other goods’, such as petrol, energy and water, was over 3 percent up.

Last week, CBS already reported that retail turnover was nearly 4 percent up in July year-on-year. The volume of sales increased by over 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 July 2018. These services include house rent, public transport, visits to restaurants or hairdressers and insurance premiums.

Consumer climate in September less favourable than in July

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 September are somewhat less favourable than in July. This is mainly because consumers were less positive about their financial situation in the next twelve months and manufacturers were less optimistic about future employment in their sector.