A conditions monitor for household consumption

10-3-2009 09:30

Economic indicators such as consumption do not develop in isolation. The basic idea underlying the conditions monitors is that developments in macro-economic indicators are driven by a relatively low number of fundamental factors. By finding indicators representing developments in these underlying factors, the observed values of the target economic variable can be placed in context and analysed more thoroughly. The underlying factors identified for household consumption were labour market developments, (expected) income development and developments in asset values. The usefulness of the indicator set is greatly enhanced by presenting it in an appropriate graphic visualisation.

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