Household consumption almost 10 percent up in December

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 January were, on balance, somewhat more favourable than in December.

Households spent more on services

In December 2022, consumers spent 19.5 percent more on services such as restaurants, cultural activities and recreation compared to December 2021 (adjusted for price changes). A lockdown was in effect due to the coronavirus crisis in the second half of December 2021. Spending on services accounts for over half of total domestic consumer expenditure.

Adjusted for price changes, households spent 6.3 percent less on food, beverages and tobacco. There was a year-on-year increase of 5,7 percent in the consumption of durable goods. Spending on clothing, textiles, footwear and leather products was up in particular. Spending on other goods, such as natural gas, was 1.1 percent down in December year on year. Consumers saved on their household energy consumption, although it was colder than in December 2021. However, they spent more on personal care products and motor fuels.

Over a week ago, CBS reported that the volume of sales in retail trade in December 2022 was 0.5 percent lower than in December 2021. The volume of sales in the non-food sector increased by 11.1 percent, but it decreased by 7.8 percent in the food sector. These figures have also been adjusted for the shopping-day pattern.

Consumer climate somewhat more favourable in January

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 increase in consumption.

According to the CBS Consumption Radar, circumstances for Dutch household consumption were more favourable in January compared to December. Consumers were less pessimistic about their financial future. Furthermore, the year-on-year increase in the employed labour force was larger and manufacturers were more positive about their expected workforce. However, the year-on-year price increase of existing owner-occupied dwellings was smaller and the year-on-year drop in stock market prices was larger.