Gross Domestic Product etc - 18

Expenditure Approach GDP

2.39 Household final consumption expenditure: consists of expenditure
incurred by resident households on consumption goods or services. Final
consumption expenditure excludes expenditure on fixed assets in the form of
dwellings or on valuables. Dwellings are goods used by their owners to
produce housing services. Expenditure on dwellings by households,
therefore, constitutes gross fixed capital formation. When dwellings are
rented by their owners, rentals are recorded as output of housing services by
owners and final consumption expenditure by tenants. When dwellings are
occupied by their owners, the imputed value of the housing services enters
into both the output and final consumption expenditure of the
owners. Valuables are expensive durable goods that do not deteriorate over
time, are not used up in consumption or production, and are acquired
primarily as stores of value. They consist mainly of works of art, precious
stones and metals and jewellery fashioned out of such stones and
metals. Valuables are held in the expectation that their prices, relative to
those of other goods and services, will tend to increase over time, or at least
not decline. Although the owners of valuables may derive satisfaction from
possessing them, they are not used up in the way that household
consumption goods, including consumer durables, are used up over time.
[Reproduced from CSO Publication][To be concluded]