The economic factors affecting the household consumption expenditure in the United Kingdom / Nur Syahirah Hannah Izham Akmal

Things are not exactly hunky dory when it comes to the economy. However, it cannot be all bad news as a slump in the economy encourages other markets to rise. Technically, there is a systemic rise and fall in the economy. The real economic phenomenon can also be known as the business cycle. It is characterized by the downward and upward movement of gross domestic product (GDP) over time in an economy. A period of excessively high GDP is often referred to as a "boom', while the following period of economic decline is known as the "bust". Therefore, this is also called the boom-bust cycle. Consumption, in economics, is the use of goods and services by households. Neoclassical economists generally consider consumption to be the final purpose of economic activity, and thus the level of consumption per person is viewed as a central measure of an economy's productive success. The higher the household consumption expenditure, the higher the economy's productive success. However, the scenario does not seems to happen during crisis as household are not keen to make consumptions due to several factors. In this research studies, it will determine the factors that contribute to the changes of household consumption expenditure during crisis. The Household Final Consumption Expenditure will act as the dependent variable. Meanwhile, the independent variables are Adjusted Net National Income Per Capita, Taxes on Goods and Services, Inflation Rate, Lending Rate as well as the Unemployment Rate. This study collects the data annually by using the Worldbank Data.