Household spending almost 2 percent up in October

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

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 October, consumers spent 3.6 percent more on durable goods than in the same month last year, mainly on home furnishings and household appliances. They also spent more on cars. Consumer spending on food, beverages and tobacco rose by 0.5 percent. On other goods, such as energy and motor fuels, they spent 0.3 percent more than in October 2018.

Last week, CBS reported that retail turnover was 3.9 percent up in October year-on-year. The volume of sales increased by 2.5 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 1.6 percent in October year-on-year. These services include insurance premiums, house rent, public transportation and visits to restaurants or hairdressers.

Consumer climate in December less favourable than in October

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 December are less favourable than in October. Consumers’ expectations on future unemployment were more negative and manufacturers were also less positive about future employment.