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 consumption as unfavourable as in the previous month

In January, conditions for Dutch household consumption are as unfavourable as in the previous month. New data have become available for six indicators. Three indicators improved and three deteriorated. 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.

Consumers were less negative about future unemployment and slightly more positive about their own financial future than in the previous month. Furthermore, the year-on-year decrease in share prices was slightly more substantial. On the other hand, the year-on-year decline of the employed labour force was also larger than in the previous month. The year-on-year increase in house prices was slightly less substantial. Manufacturers’ opinions on future employment within their company deteriorated somewhat.

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