Household consumption over 4 percent up in August

Consumption figures have not only been adjusted for price changes but also for differences in the shopping-day pattern. The CBS Consumption Radar shows that circumstances for Dutch household consumption in October are, on balance, more unfavourable than in August.

Households spent more on services

In August 2022, consumers spent 10 percent more on services such as telephone and internet subscriptions, insurances, and visits to hairdressers, restaurants and football matches compared to August 2021 (adjusted for price changes). In August 2021, some coronavirus measures were still in force in the accommodation and food services sector and at events. Spending on services accounts for over half of total domestic consumer expenditure.

Adjusted for price changes, consumers spent over 7 percent less on durable goods in August year on year. Spending on home furnishing, clothing, footwear and passenger cars, among other things, was down. There was a year-on-year decrease of over 1 percent in the consumption of food, beverages and tobacco. Spending on other goods such as natural gas and motor fuels was almost 2 percent down on one year previously.

Around three weeks ago, CBS reported that the volume of sales in retail trade in August 2022 was 6 percent lower than in August 2021. The volume of sales in the non-food sector decreased by approximately 8 percent and in the food sector by almost 3 percent. These figures have also been adjusted for the shopping-day pattern.

Consumer climate more unfavourable 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 do not necessarily translate into a higher consumption increase.

According to the CBS Consumption Radar, circumstances for Dutch household consumption are more unfavourable in October compared to August. This is mainly because consumers were more pessimistic about their financial future and future unemployment developments. Furthermore, the decrease in share prices was more substantial and manufacturers were less optimistic about future employment in their company.