Consumption is the use of goods and services to satisfy material needs.

Goods and services are consumed when the need for them has been satisfied.

Households spend on non-durable, semi-durable and durable goods and personal services such as public transport and communication.

The government has the following consumption expenditure:

• Individual consumption expenditure: Expenditure on goods and services that people need on an individual basis, for example medicine and hospitalisation.
• Collective consumption expenditure: Expenditure on goods and services that people must use collectively, such as street lights, water and police protection.