Household consumption refers to the total amount of goods and services purchased by households for personal use. This includes everyday items like food, clothing, and household supplies, as well as services such as healthcare, education, and entertainment. It plays a crucial role in the economy, influencing demand and production levels. Factors affecting household consumption include income, prices, and consumer confidence. When households have higher incomes or feel optimistic about the economy, they tend to spend more. Conversely, during economic downturns, households may cut back on spending, impacting businesses and overall economic growth.