Household Consumption in Sweden Decreased in February 2023

According to Statistics Sweden’s latest monthly indicator, household consumption decreased by 0.5% in February 2023 compared to January 2023, measured in seasonally adjusted figures. When compared to February 2022, household consumption decreased by 1.4% in fixed prices and working day adjusted figures. In the last three-month period, consumption decreased by 0.7% in fixed prices and working day adjusted figures, compared to the same period a year ago. The decrease was largely driven by a 7.7% decline in the retail trade sector, mainly in food and beverages. The hospitality sector, including restaurants, cafes, hotels, and other accommodations, had the largest positive contribution to total consumption, increasing by 10.4% in fixed prices compared to the same period a year ago.

It is essential to consider the broad price increases on consumer goods under present circumstances since they may change consumption patterns. As a result, consumers may opt for cheaper alternatives for goods that have become more expensive, a phenomenon known as substitution. This may lead to an underestimation of household consumption measured in fixed prices, which may mostly affect the retail trade sector, mainly in food and beverages, but can also be a factor in other sectors.

Overall, the data suggests that household consumption in Sweden is still struggling to recover from the pandemic’s effects. However, it is crucial to consider the present economic situation, as the ongoing price increases may influence consumers’ behavior and purchasing decisions in the future.

https://www.scb.se/en/finding-statistics/statistics-by-subject-area/trade-in-goods-and-services/domestic-trade/turnover-in-the-service-sector/pong/statistical-news/monthly-indicator-of-household-consumption-february-2023/