4.3 Private consumption expenditure

Private consumption expenditure comprises the final consumption of households and non-profit institutions. The value of the final products purchased by households and non-profit institutions is entered as final consumption expenditure; the value of presents from abroad is then added; and the sale of corresponding goods and services (in practice the value of second hand goods) is deducted. With the exception of purchases of land and acquisitions of buildings and dwellings, all purchases by households and non-profit institutions are counted as private consumption expenditure, irrespective of their service life (with the exception of business-related acquisitions by sole trader households).

Consumption expenditure is recorded according to the price paid at the time of the purchase (including goods purchased on hire purchase), and the consumption of goods is considered to take place when ownership is transferred to the buyer. Purchases are recorded as consumption expenditure by the sector that makes the acquisition.

Household expenditure abroad is included in consumption expenditure in so far as it is not attributable to business travel.

Private consumption expenditure is classified in the national accounts both according to service life and end use category.

Consumption expenditure by non-profit institutions is computed in the same way as public consumption expenditure (i.e. other non-market output is included in consumption expenditure), but it is classified under private consumption expenditure.

All private consumption expenditure represents individual consumption expenditure.

Examples