Household spending nearly 6 percent down in August

As indicated by the CBS Household Consumption Radar, circumstances for consumer spending in October are less unfavourable than they were in August.

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

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Domestic household consumption (volume, adjusted for shopping days)

Year	Month	Change (year-on-year % change)
2016	September	0.9
2016	October	1.7
2016	November	2.4
2016	December	1.6
2017	January	3.3
2017	February	2.6
2017	March	2.2
2017	April	2.8
2017	May	3
2017	June	2.7
2017	July	2.5
2017	August	2.3
2017	September	3.3
2017	October	1
2017	November	2.6
2017	December	1.7
2018	January	1.7
2018	February	3.2
2018	March	3
2018	April	3.2
2018	May	2
2018	June	2.6
2018	July	2.8
2018	August	2.6
2018	September	2
2018	October	2.1
2018	November	2.2
2018	December	1.7
2019	January	1.3
2019	February	0.9
2019	March	1.4
2019	April	1.5
2019	May	2.5
2019	June	1.4
2019	July	1.1
2019	August	1.1
2019	September	2
2019	October	2
2019	November	1.7
2019	December	3.1
2020	January	0.9
2020	February	1.2
2020	March	-6.4
2020	April	-17.1
2020	May	-12.1
2020	June	-7.1
2020	July	-6.4
2020	August	-5.8

Domestic household consumption (volume, adjusted for shopping days)

Year	Month	Change (year-on-year % change)
2016	September	0.9
2016	October	1.7
2016	November	2.4
2016	December	1.6
2017	January	3.3
2017	February	2.6
2017	March	2.2
2017	April	2.8
2017	May	3
2017	June	2.7
2017	July	2.5
2017	August	2.3
2017	September	3.3
2017	October	1
2017	November	2.6
2017	December	1.7
2018	January	1.7
2018	February	3.2
2018	March	3
2018	April	3.2
2018	May	2
2018	June	2.6
2018	July	2.8
2018	August	2.6
2018	September	2
2018	October	2.1
2018	November	2.2
2018	December	1.7
2019	January	1.3
2019	February	0.9
2019	March	1.4
2019	April	1.5
2019	May	2.5
2019	June	1.4
2019	July	1.1
2019	August	1.1
2019	September	2
2019	October	2
2019	November	1.7
2019	December	3.1
2020	January	0.9
2020	February	1.2
2020	March	-6.4
2020	April	-17.1
2020	May	-12.1
2020	June	-7.1
2020	July	-6.4
2020	August	-5.8

Lower spending on services

In August, consumers spent 14.3 percent less on services than in the same month last year. This mainly applied to e.g. restaurants, theatres, amusement parks, gyms and football games as well as public transportation. However, consumers spent more on services such as telephone and internet subscriptions, insurances, housing services, private lease and courier services.

Consumer spending on durable goods increased by 8.2 percent. They mainly spent more on electrical appliances, home furnishings and clothing compared to August 2019. Consumer spending on food, beverages and tobacco was 6.0 percent up year-on-year. Spending on other goods, such as natural gas and motor fuels, was 2.8 percent up.

Three weeks ago, CBS reported a year-on-year turnover growth in retail trade of 10.2 percent in August 2020. The volume of sales increased by 9.3 percent. Turnover was up in both the food sector and the non-food sector. These figures were adjusted for the shopping-day pattern as well

Conditions less unfavourable in October compared to August 

Every month, CBS publishes indicators to show developments around household consumption in the CBS Household 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 Household Consumption Radar, circumstances for household consumption in October are less unfavourable than in August. This is mainly due to the less negative mood among Dutch manufacturers regarding future employment growth within the company. Consumers’ expectations on their own financial future in the next twelve months are also more positive.