Household consumption 0.4 percent up in July

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© Roel Burgler
According to figures released by Statistics Netherlands (CBS), households spent 0.4 percent more in July 2023 year on year, adjusted for price changes. They bought more services, but fewer goods.

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 August were, on balance, more unfavourable than in July.

Households buy more services

In July, consumers spent 2.3 percent more on services compared to the same month last year (adjusted for price changes). These services include insurances, public transport and visits to restaurants, events or hairdressers. Spending on services accounts for over half of total domestic consumer expenditure.

Adjusted for price changes, households spent 3.9 percent less on food, beverages and tobacco. They also bought 1.6 percent fewer durable goods than in July 2022. Spending on home furnishing, clothing and footwear was down in particular. However, spending on passenger cars was up. Households bought 0.4 percent fewer other goods such as energy, motor fuels and personal care products in July.

One week ago, CBS reported that the volume of sales in retail trade in July was 2.8 percent lower than one year previously. The volume of sales decreased by 3.2 percent in the non-food sector and by 3.5 percent in the food sector. These figures have also been adjusted for the shopping-day pattern.

Consumer climate more unfavourable in August

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 in August were more unfavourable than in July. This is mainly because the year-on-year increase in stock market prices was smaller.

Sources

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