Household spending 1.1 percent up in February

The CBS Consumption Radar shows that circumstances for Dutch household consumption in April are, on balance, more unfavourable than in February.

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

Spending on appliances and home furnishing up in particular

In February, consumers spent 2.2 percent more on durable goods than in the same month last year, mainly on electrical appliances and home furnishings. Consumer spending on food, beverages and tobacco rose by 0.4 percent. Spending on other goods such as natural gas and motor fuels was 2.8 percent lower than in February 2019.

Last week, CBS reported that the Dutch retail sector achieved 5.0 percent year-on-year turnover growth in February 2020. The volume of sales increased by 3.5 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 1.8 percent in February year-on-year. These services include insurance premiums, house rent, public transportation and visits to restaurants or hairdressers.

Consumer climate in April more unfavourable than in February

Every month, CBS publishes figures about the 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 April are more unfavourable than in February. This is mainly due to the fact that consumers’ expectations on future unemployment and their financial situation for the next twelve months deteriorated significantly. In addition, there was a much sharper decline in share prices.

The household consumption figures for the reporting month of February do not yet reflect the effects of the coronavirus outbreak.