Household consumption radar

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 slightly improved

In July, conditions for Dutch household consumption improved slightly compared to the previous month. New data have become available for all six indicators. Four indicators improved, two were less favourable than in the previous month. 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 were more optimistic about future employment in their company. Furthermore, both the rise in house prices and the year-on-year growth of the employed labour force were larger than in the previous month. Consumers were slightly more optimistic about future unemployment. On the other hand, the year-on-year rise in share prices was less substantial, and consumers were less optimistic about their own financial future.

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