What is autonomous consumption?

Autonomous consumption refers to the part of total consumption that is not dependent on disposable income. This is the amount a household minimally continues to consume, even if income is completely lost. In such cases, consumption is made possible by drawing on savings or other reserves.

At a macro-economic level, autonomous consumption represents the amount that is always consumed, regardless of the level of national income.

The concept plays an important role in economic analysis and helps provide insight into consumer behaviour, independent of income.