Household consumption over 2 percent up in August

According to figures released by Statistics Netherlands (CBS), Dutch household consumption was 2.2 percent up in August 2018 over August 2017. The growth rate was less substantial than in the two previous months. In August 2018, consumers mainly spent more on durable goods, such as household appliances, cars and clothing.

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

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)
Year MonthChange
2014September-0.5
October0.3
November0.7
December0.6
2015January2
February2
March2.1
April1.7
May1.3
June2.3
July1.5
August1.4
September2.2
October1.7
November0.8
December0.8
2016January0.7
February0.4
March1.1
April0.4
May1.9
June0.7
July2.4
August1.5
September1.1
October2.6
November2.8
December2.5
2017January3.4
February1.5
March1.7
April2.6
May2.5
June2.3
July2.2
August1.9
September2.6
October1.8
November2.4
December1.3
2018January1.7
February2.9
March3
April3.1
May1.9
June2.5
July2.7
August2.2

Dutch households mainly spend more on household appliances, cars and clothing

In August 2018, consumers spent nearly 5 percent more on durable goods. Spending on household appliances, cars, clothing and footwear was up in particular. Spending on the category ‘other goods’, such as petrol, was 2 percent up. Consumer spending on food, beverages and tobacco was up by 1 percent.

Earlier this week, CBS reported that retail turnover was over 3 percent up in August year-on-year. The volume of sales also 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 nearly 2 percent in August 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), August 2018 (year-on-year % change)
 change
Durable consumer goods4.6
Other goods (e.g. gas)2
Services1.8
Food,drinks and tobacco1
Total2.2

Consumer climate in October less favourable than in August

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 October are less favourable than in August. The year-on-year rise in share prices was less substantial. Consumers’ expectations about future employment were also less positive.

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

Sources

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