What Is Consumer Expenditure?

The so-called consumer expenditure model refers to the corresponding relationship between changes in consumer income and the structure of demand, which is often referred to as the expenditure structure. With a certain income, consumers will sort their own consumption items according to the degree of urgent need for consumption, and generally meet the sorted first, that is, the main consumption. For example, temperature-saturated treatment is definitely the number one consumer, followed by housing, transportation, and education; and comfort and enhanced consumption, such as health care and entertainment.

Consumer spending patterns

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So-called

The Engel coefficients of countries around the world, as well as related consumer expenditure and consumption structure, show the following characteristics:

(1) The Engel coefficients of oil rich nations in Western Europe, Northern Europe, Southern Europe, North America, Japan, Australia and the Middle East have dropped significantly, and many countries have fallen below 25%, while the Engel coefficients of developing countries have almost exceeded 45%, and their purchasing power is still concentrated in Food consumption.

(2) Consumers from developed countries build and rebuild their homes, and gradually strengthen indoor modernization. The proportion of expenditure in this area has increased, and housing construction and clothing expenditures in developing countries have also increased.

(3) Expenditure on cars, luxury goods, tourism, and entertainment. The growth rate in developed countries is higher than that in developing countries.

(4) The proportion of household consumption expenditure in GDP and national income has risen, and consumers in many countries have even withdrawn personal deposits or borrowed money for shopping. Multi-level consumption trends are popular all over the world.