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Household Consumption Radar
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Conditions for household consumption deteriorated across the board
According to the Household Consumption Radar, conditions for Dutch household consumption worsened in May compared with the previous month. All indicators showed deterioration; especially consumer’s expectations were far more pessimistic. All indicators are distinctly below their average level over the past years.
Household consumption is affected by consumers’ expectations, job market developments and consumers’ personal financial situations. New data have become available for all indicators in April, except for the anticipated workforce in manufacturing industry.
Consumers have never been as pessimistic about their personal financial situation over the next twelve months as they were in May. They were also more pessimistic about future employment in the Netherlands. Manufacturers were more negative about future employment in their sector. The growth of the employed labour force stopped. The price drop on the residential property market was somewhat more substantial than last month. Lastly, the quoted value of Dutch shares dropped more rapidly than last month.
Explanatory notes Consumption Radar.
