Final consumption expenditure

Definition
Expenditure by resident institutional units (including households and enterprises whose main economic interest is in that economic territory) on goods or services that are used for the direct satisfaction of the individual or collective needs of members of the community. For private households, this includes all expenditure incurred by household members with the exceptions of: Business expenses; Additions to savings, amounts invested or loaned; Gambling losses; Goods or services produced as outputs of incorporated enterprises owned by households that are retained for consumption by members of the household; Retail value of home-grown produce (i.e. From own garden or farm) consumed by the household; Expenditure abroad; Repayments of loans (e.g. Mortgage capital repayments); Fines; Trade union, club and other memberships; Licenses (excluding TV); Donations to non-profit institutions; Life insurance services. Moreover, the following points relating to the collection of household consumption expenditure data require special emphasis: - Income tax and social insurance contributions: Income tax payments and social insurance contributions are not recorded as expenditures but are treated as charges on household income. - Regular household cash transfers paid: This component, which includes regular cash transfers paid by household members are also treated as charges on household income - Transfers within the same household: Transfers within the same household such as pocket money given to children is not considered neither as an expenditure, nor as an income because it is simply a transfer from one household member to another. - Supply of articles from family shop: The retail values of articles obtained without payment from a family shop are recorded in the expenditure diaries as they are acquired. -Expenditure abroad: Total expenditure on holidays is based on replies to a special retrospective question included in the main questionnaire relating to holidays during the three months preceding the interview. In the case of foreign or local holidays occurring during the two weeks of the interview, all related expenditure was recorded in the diaries. - Credit accounts and hire purchase arrangements: Any goods ordered or delivered but not paid for are ignored unless they are acquired through credit accounts or hire purchase arrangements.



Source(s)

Harmonised Indices of Consumer Prices

Household Budgetary Survey

NEWS RELEASE: Gross Domestic Product

Retail Price Index

Related Variable(s)

Cost-of-living index

Housing cost

Total consumption expenditure

Back to Statistical Concepts