Household final consumption expenditure consists of expenditure incurred by resident household on goods or services that are used for the satisfaction of needs or wants.
The corresponding goods and services are not stored, but are considered as consumed at the time of their purchase, even if some of them are durable goods (cars, household electrical appliances, furniture, etc.).
Household final consumption expenditure does not include expenditure partially or fully covered by social transfers in kind. The final consumption expenditure of households includes only the share of expenditure on health, education and housing, remaining to be paid by them, after possible reimbursements. The part which is reimbursed to them is included in the final consumption expenditure of the sector of general government.
Household final consumption expenditure includes some special cases, which correspond to situations in which households produce the goods and services they consume themselves. Thus, housing services produced by owners who occupy their own housing is recorded as an expenditure of the owners, the amount of which is equal to that of their production. Moreover, it is households - and not their employers - who take into account the final consumption expenditure corresponding to the goods and services received as remuneration in kind.