Household spending over 1 percent up in August

The CBS Consumption Radar shows that circumstances for Dutch household consumption in October are, on balance, less favourable than in August.

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

Spending on services up in particular

In August, consumers spent 1.1 percent more on durable goods than in the same month last year, mainly on home furnishings and household appliances. Spending on other goods such as energy and motor fuels was up by 1.3 percent year-on-year. Consumers spent 0.8 percent more on food, beverages and tobacco than one year previously. Last week, CBS reported that retail turnover was 3.0 percent up in August year-on-year. The volume of sales increased by 0.8 percent. These figures were also adjusted for the shopping-day pattern.

Consumer spending on services – which accounts for over half of total domestic consumer expenditure - rose by 1.6 percent in August 2019 year-on-year. These services include insurance premiums, house rent, public transportation and visits to restaurants or hairdressers.

Consumer climate in October less favourable than in August

Every month, CBS publishes figures about circumstances for household consumption in the CBS Consumption Radar. Household consumption is influenced by factors such as 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 October are less favourable than in August. This is mainly because consumers’ expectations about future unemployment were less positive and the year-on-year increase in the employed labour force was smaller than in the previous month.