Household consumption remains low

Dutch household spending was 3.1 percent lower in June 2009 than in June 2008. In April as well as in May household spending dropped by 3.7 percent. Domestic household consumption has been lower than one year previously for the last six months. Consumption figures are adjusted for price changes and differences in the shopping-day pattern.

Spending on goods was 4.9 percent lower in June than one year previously The reduction was somewhat less dramatic than in April and May. With a 1.5 percent drop, the decline in spending on services virtually equalled that of preceding months.

Most notably, households cut back on spending on durable consumer goods. The volume of spending on this cyclically sensitive category plunged by more than 8 percent relative to June 2008. Households were reluctant to buy new cars, household appliances and furniture. The volume of spending on food, drinks and tobacco was 1.5 percent down on one year previously. Households have reduced spending on this category of articles for more than a year.

Domestic household consumption (volume)