Household consumption almost 2 percent up in October

According to figures released by Statistics Netherlands (CBS), Dutch household consumption was 1.7 percent up in October 2018 over October 2017. The growth rate was the lowest so far this year. In October 2018, consumers mainly spent more on services.

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

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
2014November0.7
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
2018January1.8
February3
March3.1
April3.2
May2
June2.6
July2.9
August2.3
September2.1
October1.7

Dutch households mainly spend more on services

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

In October, consumers spent over 1 percent more on food, beverages and tobacco. Consumer spending on durable goods was up by almost 1 percent. Spending on household appliances and clothing was up in particular. However, consumers spent considerably less on cars. Consumer spending on the category ‘other goods’, such as petrol, was almost 2 percent up.

Last week, CBS reported that retail turnover was 3.3 percent up in October year-on-year. The volume of sales increased by 2.6 percent. This figure was also adjusted for the shopping-day pattern.

Domestic household consumption by category (volume, adjusted for shopping days), October 2018 (year-on-year % change)
 change
Services2.1
Other goods (e.g. gas)1.9
Food,drinks and tobacco1.3
Durable consumer goods0.7
Total1.7

Consumer climate in December less favourable than in October

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 December are less favourable than in October. The year-on-year increase in share prices turned into a decrease and manufacturers’ expectations on future employment were less positive. Consumer confidence also deteriorated.

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

Sources

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