Household consumption nearly 2 percent up in May

The CBS Consumption Radar shows that circumstances for Dutch household consumption in July are, on balance, about as favourable as in May.

Consumption figures are adjusted for price changes and differences in the shopping-day pattern.

Dutch households spend more on food and services

In May 2018, spending on food, beverages and tobacco was nearly 3 percent up year-on-year. Consumer spending on services - accounting for over half of total domestic consumer expenditure - rose by over 2 percent. These services include house rent, public transport, visits to restaurants or hairdressers and insurance premiums.

Spending on durable goods, such as clothing, shoes and cars, was 1 percent up compared to May 2017. This growth rate was smaller than in April (nearly 8 percent). In May, consumption of natural gas was lower than in the same month in 2017, just like in April.

Last week, CBS already reported that retail turnover was over 3 percent up in May year-on-year. The volume of sales also increased by over 3 percent. This number was also adjusted for the shopping-day pattern.

Consumer climate in July as favourable as in May

CBS publishes figures about circumstances for household consumption on a monthly basis in the CBS Consumption Radar. Household consumption is affected by consumers’ expectations, their personal financial situation and developments on the labour market. Although the Radar indicators show a strong correlation with household consumption, improved circumstances are not necessarily translated into increased growth.

According to the CBS Consumption Radar, circumstances for Dutch household consumption in July are more or less as favourable as in May. Manufacturers’ opinions on future employment in their sector deteriorated. On the other hand, the rise in share prices and the growth of the employed labour force were larger.