Household consumption falls by 0.1% in first quarter
The Office for National Statistics show the Household Final Consumption Expenditure (HHFCE) contracts by 0.1% in Q1 2012 after growth of 0.5% in the final quarter of 2011.
As household expenditure makes up around 60% of UK GDP, it has a very important role in economic growth.
Between the final quarter of 2011 and the first quarter of 2012, household spending per head fell by 0.3% in terms of volume. The statistics show that there is a trend for spending more but getting less as the current price expenditure per head has risen by 0.3% to £3,759.
The food and non alcoholic beverages sector has seen the largest positive contribution to growth in terms of volume with an increase of £275 million. The statistics also say something about our diets as meat and vegetables show the largest increases in volume within this sector with meat increasing 4.5% quarter on quarter and vegetables rising to 5.6%.
Statistics show that since 2008 UK households spend less abroad while foreign visitors spend more. The level of spending is compiled through the International Passenger Survey.
During the years between 1997 and 2008, UK household spending abroad increased from £3.5 billion to £9.1 billion. However in 2009 this amount started to fall and in the first quarter of 2012 imports of tourism were £6.9 billion.
The Office for National Statistics (ONS) is the executive office of the UK Statistics Authority, a non ministerial department which reports to Parliament. It is the largest statistical producer to the UK Government and employs 3,400 staff.
This was posted in Bdaily's Members' News section by Francesca Dent .