Household consumption down

Household spending on goods and services was 1.9 percent down in May 2012 from May 2011. The decline was in the same order of magnitude as in the preceding two months. Consumer spending has declined almost continually for year now. Consumption figures have been adjusted for price changes and differences in the shopping-day pattern.

Spending on durable consumer goods fell by 6.0 percent relative to May 2011. Home furnishing articles and new cars were obviously less in demand. Spending on food, drinks and tobacco was 1.2 percent down, whereas spending on services virtually equalled last year’s level.

The Household Consumption Radar shows the conditions for household consumption. These conditions improved in July. Consumers were less pessimistic, for example, about future unemployment and their financial situation over the next twelve months.

Domestic household consumption (volume, adjusted for shopping-days)

More figures can be found in dossier Business cycle.