Categories: Economy

Families spend more, especially on Related Articles services

Household consumption in May was 1.4% higher than in the same month of the previous year. This was reported by Statistics Netherlands. “I would describe it as the Dutch consumer walking slowly,” says domestic economist Han de Jong.

Household consumption in May was 1.4% higher than in the same month of the previous year. This was reported by Statistics Netherlands. “I would describe it as the Dutch consumer walking slowly,” says domestic economist Han de Jong. (ANP / Robin Utrecht)

According to domestic economist Han de Jong, the 1.4 percent increase is quite contained, considering, among other things, energy prices that have fallen further in recent months and the wage increase that has a noticeable acceleration. ‘We started this year in January with more than 5% growth, but now it has slowed down. I would describe him as the Dutch consumer walking at a slow trot.’

Crown

Consumers mainly spend more money on services and buy fewer goods. De Jong still sees the effect of the corona pandemic in this. ‘When we were all stuck in the house, we bought a lot of extra goods, like things for home furnishings. These are durable goods, so it stands to reason that after the pandemic they will decrease a bit over time.”

The main exception in the goods category is cars, on which the Dutch still spend a lot. According to De Jong, this trend is also seen in other countries. ‘Auto sales are recovering, which is an international trend.’

Summer months

According to the economist, there is a good chance that consumer spending will grow faster again in the coming summer months. “If you observe that incomes have recently grown faster than expenditures, you must conclude that households have a buffer. If they become more optimistic, expenses can grow faster again.’

There is of course the possibility that a large part of these reserves will be spent abroad. “But on the other hand, there are foreign families in a similar situation who come to us again.”

Author: Bram van Eijndhoven
Source: BNR

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