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Household final consumption expenditure, in trend chain volume terms, grew solidly during the last 10 years. From June quarter 1992 to June quarter 2002, household final consumption expenditure grew at an average annual rate of 3.7%, increasing every quarter during that period. Household final consumption expenditure was $107b in the June quarter 2002.
Household final consumption expenditure measures current expenditure by households and producers of private non-profit services for households, such as charities, clubs, trade unions and private schools. The items covered include expenditure on consumer durables such as cars, furniture and long-lasting household appliances; consumer semi-durables such as clothing and other appliances; single use goods such as food; and services of all kinds, for example, hairdressing and public transport.
Household final consumption expenditure makes up over half of expenditure on GDP and is the largest component of aggregate demand. Consequently, changes in household final consumption expenditure from one period to another have a significant impact on movements in GDP.
The level of household final consumption expenditure is dependent on a number of factors including: present and anticipated future levels of income, expenditure and saving habits, relative price levels and the rate of inflation.
Economic policy makers may attempt to influence the level of household final consumption expenditure to either dampen or stimulate the economy by altering interest rates or through taxation or wages policy.
Australian National Accounts: Concepts, Sources and Methods (5216.0)
Contains a detailed explanation of the system of Australian national accounts outlining major concepts and definitions.
Australian National Accounts: National Income, Expenditure and Product (5206.0)
Contains quarterly data for household final consumption expenditure.
Australian System of National Accounts (5204.0)
Contains annual data for household final consumption expenditure.