Household spending over 2 percent up in September

The CBS Consumption Radar shows that circumstances for Dutch household consumption in November are, on balance, as favourable as in September.

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

Spending on appliances and home furnishing up in particular

In September, consumers spent 5.8 percent more on durable goods than in the same month last year, mainly on home furnishings and household appliances. The rise in spending on durable goods was the largest one in over a year.

Consumers spent 1.0 percent more on other goods such as energy and motor fuels than in September 2018. Spending on food, beverages and tobacco did not change.

Last week, CBS reported that retail turnover was 4.6 percent up in September year-on-year. The volume of sales increased by 3.1 percent. These figures were also adjusted for the shopping-day pattern.

Consumer spending on services – which accounts for over half of total domestic consumer expenditure - rose by 1.8 percent in September 2019 year-on-year. These services include insurance premiums, house rent, public transportation and visits to restaurants or hairdressers.

Consumer climate in November as favourable as in September

Every month, CBS publishes figures about circumstances for household consumption in the CBS Consumption Radar. Household consumption is influenced by factors such as 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 November are as favourable as in September. Consumers’ expectations on future unemployment were less positive. On the other hand, the year-on-year rise of share prices was more substantial.