Consumption continues to sustain economic growth in 2005
In 2005, household consumption spending rose by 2.1% in volume. The average annual price rise had remained steady over the previous three years (+2.0 in 2005). Despite only a moderate increase in purchasing power (+1.1%), household spending remained strong and was the basis of GDP growth in 2005 (+1.2%). Spending on energy was little affected by the high rise in prices. There was an increase in automobile purchases, but these were mostly of foreign makes. Information and communication technology goods and services continued to seduce the consumer, due to their high stock turnover and price reductions. Households allocated an increasingly large part of their budget to accommodation and transport: these two household budget items constituted 39.6% of household spending in 2005.