Decline household consumption slows down

Dutch household spending was 2.1 percent lower in July than in July 2008. In June household spending dropped by 2.9 percent. Domestic household consumption has been lower than one year previously for the last seven months, but the decline has slowed down. Consumption figures are adjusted for price changes and differences in the shopping-day pattern.

Spending on goods was 3.6 percent lower than in July 2008. Spending on services was 0.7 percent down. The reduction was less dramatic than in preceding months.

Households remained cautious about buying durable consumer goods. The volume of spending was 4.7 percent smaller than one year previously. Most notably, consumers cut back spending on household appliances, furniture and new cars. The decline in car sales, on the other hand, was clearly less steep than in preceding months. Spending on clothes was higher than in July 2008.

The volume of spending on food, drinks and tobacco was 2.6 percent down on one year previously. Households have reduced spending on this category of articles for more than a year.

Domestic household consumption (volume)