Household spending over 1 percent up in November

The CBS Consumption Radar shows that circumstances for Dutch household consumption in January are, on balance, more favourable than in November.

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

Spending on cars, home furnishing and appliances up in particular

In November, consumers spent 2 percent more on durable goods than in the same month one year previously, mainly on cars, home furnishings and household appliances. Consumer spending on food, beverages and tobacco rose by 1 percent. On other goods, such as motor fuels, they spent 0.9 percent less than in November 2018.

Last week, CBS reported that the Dutch retail sector achieved year-on-year turnover growth of 2.6 percent in November 2019. The volume of sales increased by 1.4 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 1.5 percent in November year-on-year. These services include insurance premiums, house rent, public transportation and visits to restaurants or hairdressers.

Consumer climate in January more favourable than in November

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 January are more favourable than in November. This is mainly due to the fact that the year-on-year increase in stock market prices was higher. In addition, consumers’ expectations on future unemployment were less negative. However, manufacturers were less positive about future employment in their companies.