Household spending down by 2.2 percent
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Household spending on goods and services was 2.2 percent down in July 2013 from July 2012. The contraction was somewhat smaller than in June (2.6 percent). Consumer spending has been in decline continuously for twenty-four months now. Consumption figures have been adjusted for price changes and differences in the shopping-day pattern.
Household spending on durable goods fell by 7.5 percent in July versus a 9.8 percent downturn in June. Car sales were still down on twelve months previously, but the decline was less dramatic than in June. Last year, many consumers anticipated a change in tax legislation effective from 1 July 2012, which made new cars more expensive. As a result, car sales were relatively high in June 2012 and relatively low in July 2012. Spending on food, drinks and tobacco was down by 0.7 percent. Household spending on services was 0.4 percent lower.
By means of six indicators, the Household Consumption Radar shows whether circumstances for Dutch household consumption have become more or less favourable. September’s Household Consumption radar shows that circumstances for consumption were somewhat more unfavourable than in August.
Domestic household consumption (volume, adjusted for shopping-days)
More figures can be found in dossier Business cycle.
For more information on economic indicators, the reader is referred to the Economic Monitor.