Household consumption radar

21/02/2018 06:30
The Household Consumption Radar is an instrument developed by Statistics Netherlands to analyse developments in consumption by Dutch households and place them in some sort of context. Using six indicators – selected on the basis of an econometric study - the radar monitors whether circumstances have developed favourably or unfavourably for Dutch consumption.

Source: Statistics Netherlands
Inside the dotted line: less favourable than average.

Outside the dotted line: more favourable than average.

Conditions for household consumption more favourable

Conditions for Dutch household consumption are more favourable in February 2018 compared to January. New data have become available for each of the six indicators. Three indicators improved, two deteriorated and one did not change. Household consumption is affected by consumers’ expectations, their personal financial situation and developments on the job market. Although the Radar indicators show a strong correlation with household consumption, improved circumstances are not necessarily translated into increased growth.

Manufacturers’ expectations on future employment in their sector were more positive than in the previous month. The rise of share prices on an annual basis was also more substantial. The growth of the employed labour force on an annual basis was also bigger than in the previous month. On the other hand, the mood of Dutch consumers about future unemployment and about their personal financial situation in the next 12 months deteriorated somewhat. The increase of house prices on an annual basis remained the same.

Explanatory notes: Consumption Radar.