Household consumption almost 2 percent down in September

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 October were, on balance, equally unfavourable as in September.

Fewer services and goods

In September, consumers spent 0.3 percent less 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. It is the first year-on-year decrease since April 2021. Spending on services accounts for over half of total domestic consumer expenditure.

Adjusted for price changes, households spent 1.7 percent less on food, beverages and tobacco. They also bought 4.3 percent fewer durable goods than in September 2022. Spending on footwear, clothing and home furnishing was down in particular. However, spending on passenger cars was up. Households bought 7.1 percent fewer other goods such as energy, motor fuels and personal care products, in September.

Two weeks ago, CBS reported that the sales volume in retail trade in September was 3.3 percent lower than one year previously. Sales volume decreased by 6.4 percent in the non-food sector and by 2.1 percent in the food sector. These figures have also been adjusted for the shopping-day pattern.

Consumer climate equally unfavourable in October

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 October were equally unfavourable as in September. The year-on-year increase in stock market prices was larger and the year-on-year decrease in prices of owner-occupied dwellings was smaller. But the year-on-year growth of the employed labour force was smaller and consumers were more negative about future unemployment.