Household consumption in the Netherlands experienced a growth of nearly 1 percent in March 2023, according to a report by Statistics Netherlands (CBS). Adjusted for price changes, households purchased 0.8 percent more compared to March 2022. The increase in consumption was driven by higher spending on services but lower spending on goods.
The CBS report focuses on volume data, which takes into account adjustments for price changes and changes in the composition of shopping days. However, the consumption conditions in April were less favorable than in March, as indicated by the CBS Consumption Radar.
In terms of specific categories, consumers spent 2.8 percent more on services in March, including insurance, public transportation, restaurants, events, and hairdressers, compared to the same period last year. Expenditure on services accounted for more than half of the total domestic consumption by households.
On the other hand, purchases of food, beverages, and tobacco decreased by 5.8 percent in March 2023 compared to March 2022. Additionally, durable goods saw a decline of 3.9 percent in consumer spending, particularly in home furnishings, clothing, and shoes. However, purchases of cars increased. Furthermore, households consumed 6.8 percent more on other goods, such as energy and motor fuels, in March.
Recent data from the CBS also indicated a decline in retail sales volume in March 2023 compared to the same period last year. The non-food sector experienced a decrease of 9.6 percent, while the food sector contracted by 5.7 percent. These figures were adjusted for changes in the composition of shopping days.
Looking ahead, the consumption conditions in April were reported to be less favorable than in March, according to the CBS Consumption Radar. Factors such as consumer expectations, the labor market situation, and changes in household wealth influence household consumption. Although improved conditions do not necessarily guarantee higher consumption growth, the radar’s indicators are closely related to household consumption.
The less favorable consumption conditions in April were attributed to a smaller increase in the employed labor force compared to the previous month, as well as a greater year-on-year decline in the prices of existing homes.