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CONSUMPTION

Statistics Directorate    
French Equivalent: Consommation

Definition:
Consumption is an activity in which institutional units use up goods or services; consumption can be either intermediate or final. It is the use of goods and services for the satisfaction of individual or collective human needs or wants.

Alternatively, a consumption of a good or service is one that is used (without further transformation in production) by households, non-profit institutions serving households (NPISHs) or government units for the direct satisfaction of individual needs or wants or the collective needs of members of the community.

Context:
There are several types of consumption:

- intermediate consumption consists of the goods and services used by enterprises as inputs into their processes of production; it is excluded from CPIs;

- collective consumption consists mainly of the collective services provided by governments to the community as a whole; it is excluded from CPIs;

- final individual consumption consists of goods and services that individual households may acquire in order to satisfy their own needs and wants.

ILO, IMF, OECD, Eurostat, UNECE, World Bank, 2004, Consumer Price Index Manual: Theory and Practice, International Labour Office, Geneva
http://www.ilo.org/public/english/bureau/stat/guides/cpi/index.htm.

Source Publication:
System of National Accounts (SNA), 2008. 1.52, 9.2.

Cross References:
Consumption good or service
Household final consumption expenditure

Hyperlink:
http://esa.un.org/unsd/sna1993/introduction.asp

Statistical Theme: National accounts

Created on Tuesday, September 25, 2001

Last updated on Tuesday, April 16, 2013