Definition: Final consumption expenditure of households
The final consumption expenditure of households corresponds to the expenditure effected by households in order to consume goods and services. This includes, in addition to purchases effected in monetary form, the estimated value of certain goods and services, e.g. the value of internal production, the benefits in kind and the imputed rents for certain categories of households. On the other hand, investments effected by the households (e.g. purchase of a house, major works on housing), direct duties and taxes paid to the various administrations, and savings are excluded from this concept. Similarly, this concept includes only the expenditure intended for the direct satisfaction of the needs of the households, and not expenditure incurred within an occupational framework.
The component elements of consumption expenditure can be summarised as follows:
(a) Monetary expenditure intended for consumption (not including investments, saving, direct taxes)
(b) Non monetary expenditure:
- Consumption of own production;
- Benefits in kind;
- Imputed rent.
Eurostat, "Household budget surveys in the EU - Methodology and recommendations for harmonization 1997", Office for Official Publications of the European Communities, Luxembourg, 1997