Household spending

Household spending is the amount of final consumption expenditure made by resident households to meet their everyday needs, such as: food, clothing, housing (rent), energy, transport, durable goods (notably, cars), health costs, leisure, and miscellaneous services. It is typically around 60% of gross domestic product (GDP) and is therefore an essential variable for economic analysis of demand. Household spending, including government transfers, is the actual individual consumption that it is equal to households' consumption expenditure plus those (individual) expenditures of general government and non-profit institutions serving households (NPISHs) that directly benefit households, such as, health care and education. "Housing, water, electricity, gas, and other fuels" is one out of the twelve categories included as part of individual consumption expenditures. Housing and energy expenditures consist of actual rentals for housing, imputed rentals for owner-occupied housing, housing maintenance and repairs, as well as costs for water, electricity, gas and other fuels. This indicator is measured in million USD, in current prices and PPPs, as % of GDP, in annual growth rates and in % of disposable income. Data are under System of National Accounts (SNA 1993) for all countries except for Australia and United States (SNA 2008).

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Keywords: expenditure, household, spending