Factors affecting household consumption in Uganda

Abstract

Household consumption sustains economic growth, which is the concrete embodiment of people's living standards. This study examines the factors affecting household consumption in Uganda. Using secondary data from the Uganda National Household Survey (2019/20), the study assessed the effect of household demographic and economic factors on household consumption in Uganda. This study utilised a multiple linear regression model to analyse the data. The empirical results indicated that household size, region, area of residence, main source of household income, savings, marital status and age of household head significantly affected household consumption in Uganda. Based on the findings, the study recommends that households take the initiative to save in times of high incomes in order to increase or maintain their level of consumption, that fiscal policies focus on households with many members and that the construction of urban infrastructure in rural areas be encouraged to increase economic activity and increase consumption levels.