Statistical presentation

Data description

Households final consumption expenditure (HFCE) accounts households’ purchases of goods and services in Denmark and is a central component of the functional accounts in the national accounts. HFCE is compiled both current and in constant prices, making it possible to assess both levels and real growth. The statistics are broken down by goods and services categories in accordance with COICOP18 (Classification of Individual Consumption by Purpose), including food, alcohol and tobacco, clothing and footwear, housing, transport, communication, health, education, recreation and culture, as well as other goods and services. HFCE is compiled as part of the functional accounts in the national accounts, alongside other components such as fixed capital, employment and wages, productivity developments, input-output tables, financial accounts, etc. These breakdowns make it possible to analyze consumption patterns across different types of consumption and contribute to a better understanding of developments in the economy.

Classification system

In the national accounts, several different classifications are used, sometimes with Danish adaptations or subdivisions, including for household consumption.

Consumption groups: Household consumption is classified according to the Classification of Individual Consumption by Purpose (COICOP18).

More information on the national accounts’ consumption groups can be found at Consumption groupings in the national accounts.

Sectors:

Institutional sectors follow ESA 2010.

Another dimension in the national accounts, including HFCE, is the product dimension, which specifies consumption distributed by products. In Denmark, product numbers are used based on an adapted version of the Statistical Classification of Products by Activity (CPA). The final national accounts consist of approximately 2.350 reconciled product balances. Although these product breakdowns are not published in detail in StatBank, they support the calculations and ensure consistency in the estimation of household consumption.

Sector coverage

Households final consumption expenditure (HFCE) primarily covers private households (S11), which account for the largest and most central part of consumption. In addition, NPISHs (S12) are included when they provide services free of charge or at a reduced price, as well as general government (S13) to the extent that households receive subsidized services, such as healthcare, education, or cultural offerings. The rest of the world (S14) is included indirectly as an adjustment for cross-border consumption, for example tourist expenditures in Denmark and Danes’ consumption abroad, but is not counted as direct HFCE.

Statistical concepts and definitions

Constant prices: Current prices adjusted for inflation. Calculation of fixed prices is necessary to make comparisons over time where the effect of price developments needs to be eliminated. Fixed prices are calculated using the prices from the previous year, and these form the basis for calculating the chained values. In addition, fixed prices with a fixed base year (e.g. year 2000) are also calculated.

Current prices: Prices or price level that applies to goods and services in the current period. The opposite of current prices is fixed prices.

Chained values: Periodic changes (e.g. years) that are chained to create comparability over longer periods of time.

Statistical unit

The units used in the estimation of household consumption are primarily resident households, which are capable of making independent economic decisions and engaging in transactions with other units. Other units, such as enterprises, public institutions, or the rest of the world, are included only indirectly through prices, imports, exports, and adjustments for cross-border consumption.

Statistical population

Household consumption covers all resident households characterized by their ability to make independent economic decisions and engage in economic transactions with other resident or non-resident units.

Reference area

The Danish national accounts, including household consumption, cover Denmark excluding the Faroe Islands and Greenland. The national accounts do not encompass all economic activity-taking place geographically in Denmark, but rather the activity carried out by Danish resident units, regardless of where the transactions occur.

Time coverage

Data on household consumption are available on both a quarterly and an annual basis. The quarterly national accounts for HFCE cover the period from Q1 1990, while the annual national accounts cover the period from 1966 onwards.

Base period

Chained values are calculated with 2020 as the reference year.

Unit of measure

DKK million

Reference period

HFCE covers transactions carried out by households during the quarter or the year.

Frequency of dissemination

Quarterly figures are published eight times a year. Annual figures are published three times a year.

Legal acts and other agreements

The Danish Statistics Act § 6 and §§ 8-12.

Regulation (EU) No. 549/2013 of 21 May 2013 on the European System of National and Regional Accounts in the European Union (ESA2010) (OJ L 174 26.06.2013, p. 1).

The Commission Decision of 17 December 2002 further clarifying Annex A to Council Regulation No. 2223/96 as regards the principles for measuring prices and quantities in the national accounts.

Cost and burden

The estimation of household consumption is based on information collected by Statistics Denmark for the compilation of other statistics. Therefore, there is no direct reporting burden associated with this statistics. Questionnaires for surveys, such as the Household Budget Survey (FU), which subsequently form the source basis for the national accounts, are often prepared in consultation with the national accounts to ensure that the data also meet the needs for compiling the households consumption.

Comment

Additional information can be found the subject page or obtained by contacting Statistics Denmark.