Household consumption over 6 percent up in July

Consumption figures have not only been adjusted for price changes but also for differences in the shopping-day pattern. The CBS Consumption Radar shows that circumstances for Dutch household consumption in September are, on balance, less favourable than in July.

Households spent more on services

In July 2022, consumers spent over 12 percent more on services such as telephone and internet subscriptions, insurances, and visits to hairdressers, restaurants and football matches compared to July 2021 (adjusted for price changes). In July 2021, some coronavirus measures were still in force in the accommodation and food services sector and at events: e.g. keeping distance, face masks, coronavirus passes and limited opening hours. Spending on services accounts for over half of total domestic consumer expenditure.

Consumers spent 2 percent less on durable goods in July year on year. Spending on passenger cars and home furnishing was down in particular. Consumers spent more on clothing and footwear.
Adjusted for price changes, there was a year-on-year decrease of nearly 1 percent in the consumption of food, beverages and tobacco. Spending on other goods such as natural gas, motor fuels and personal care products was slightly down on one year previously. Consumers consumed less motor fuels and energy.

Around three weeks ago, CBS reported that the volume of sales in retail trade in July 2022 was 1.5 percent lower than in July 2021. The volume of sales in the non-food sector decreased by 2 percent and in the food sector by almost 1 percent. These figures have also been adjusted for the shopping-day pattern.

Consumer climate less favourable in September

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 do not necessarily translate into a higher consumption increase.

According to the CBS Consumption Radar, circumstances for Dutch household consumption are less favourable in September compared to July. This is mainly because the year-on-year increase in the employed labour force and in house prices was less substantial. Furthermore, consumers were more pessimistic about their financial future and less positive about future unemployment developments.