Broadly speaking, household consumption refers to how much money or value is expended on individual household or family goods and services. Consumption, in general, is related to wealth and income. Household consumption can be affected by a wide variety of phenomena, including consumer expectations, personal financial situations, and job market developments. Household consumption is a main indicator of living standards and an important element to measure overall economic well-being.

Another important measure is the household final consumption expenditure. According to the World Bank and the Organisation for Economic Co-operation and Development (OECD), household final consumption is the market value of all goods and services purchased by a household. These include durable goods, such as home electronics, and other income, such as rental property. It also includes ...

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