EU household spending growth slows in 2025 as alcohol and tobacco outlays decline
EU household final consumption expenditure, adjusted for inflation, rises by 1.6% in 2025 from 2024, slightly below the 1.8% growth recorded a year earlier. The spending pattern shows stronger demand for information and communication, recreation and culture, and clothing, while alcohol, tobacco and narcotics remain the only category in decline.
Highlights
- EU household consumption grows 1.6% in 2025, down from 1.8% in 2024, showing moderate but slowing demand expansion.
- Spending on information and communication leads with a 3.3% gain, while recreation, sport and culture rise 3.1% and clothing and footwear 2.7%.
- Alcoholic beverages, tobacco and narcotics spending declines 1.9% in 2025, continuing the category's downward trend seen in 2024.
Consumer spending trends in 2025
As reported by Eurostat, inflation-adjusted household consumption in the EU continues to expand in 2025, though at a slower pace than in the previous year. The 1.6% annual increase follows growth of 1.8% in 2024, indicating that consumer demand remains positive but loses some momentum.Among the main spending categories, information and communication posts the strongest gain at 3.3%. Recreation, sport and culture follows with a 3.1% increase, while clothing and footwear rises 2.7%.
Category shifts point to changing demand
The only major category to record a drop is alcoholic beverages, tobacco and narcotics, which declines by 1.9% in 2025. That extends the downward movement already seen in 2024 and suggests a continuing shift in household spending patterns across the bloc.The broader data indicates that discretionary and lifestyle-related segments continue to attract more consumer spending than products in decline. For businesses and policymakers, the figures highlight where household demand in the EU is strengthening and where it remains under pressure.
Earlier, we looked at DAX buying momentum as the German index held above key moving averages amid bullish signals.
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