Household consumption almost 1 percent up in October

These are volume figures, i.e., figures adjusted for price changes. In addition, they have been adjusted for differences in the shopping day pattern. The CBS Consumption Radar shows that circumstances for Dutch household consumption in December are, on balance, somewhat more favourable than in October.

Households spent more on services

In October 2022, consumers spent 3.6 percent more on services such as telephone and internet subscriptions, insurances, and visits to hairdressers, restaurants and football matches compared to October 2021 (adjusted for price changes). In October 2021, there were virtually no coronavirus measures in place. Spending on services accounts for over half of total domestic consumer expenditure.

Adjusted for price changes, households spent 4.8 percent less on durable goods in October year on year. Spending on home furnishing, clothing and electrical appliances, among other things, was down. There also was a year-on-year decrease of 2.3 percent in the consumption of food, beverages and tobacco. Spending on other goods such as natural gas and personal care products was 1.6 percent down on one year previously. Households mainly consumed less energy. It was less cold than in October 2021.

Around three weeks ago, CBS reported that the volume of sales in retail trade in October 2022 was 5.2 percent lower than in October 2021. The volume of sales in the non-food sector decreased by almost 7 percent and in the food sector by over 3 percent. These figures have also been adjusted for the shopping-day pattern.

Consumer climate slightly more favourable in December

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 somewhat more favourable in December compared to October. Consumers were less pessimistic about their financial future and future unemployment developments. Furthermore, the year-on-year price decrease in share prices was smaller.