Durables and the Recent Strength of Household Spending

6 Pages Posted: 28 Apr 2005

See all articles by Robert Hamilton

Robert Hamilton

Bank of England - Monetary Analysis

Beverley Morris

Bank of England

Abstract

Household consumption in the United Kingdom grew by about 4% during 2001. This was largely accounted for by unusually strong spending on durable goods - growth in spending on other goods and services slowed to around a six-year low. This article discusses why spending on durable goods needs to be analysed differently from that on other types of goods, and provides some possible explanations for its recent unusual strength. In addition, an alternative estimate of consumption is presented that replaces the expenditure on durable goods with the flow of services derived from them. Over the past year, this alternative measure has grown less strongly than the standard expenditure series.

Suggested Citation

Hamilton, Robert and Morris, Beverley, Durables and the Recent Strength of Household Spending. Bank of England Quarterly Bulletin, Summer 2002, Available at SSRN: https://ssrn.com/abstract=708269

Robert Hamilton (Contact Author)

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Beverley Morris

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
93
Abstract Views
1,434
Rank
502,565
PlumX Metrics