Consumer confidence down

26/10/2004 09:30

After correction for seasonal effects, consumer confidence in the Netherlands is 4 points lower in October than in September. This is the second month in a row that consumer confidence has fallen; in August it reached its highest level since May 2002. Consumer confidence is still well above its low point last year. The decreasing confidence in October is mainly the result of the considerably increased pessimism about the economic climate. In addition, willingness to buy has fallen slightly, according to Statistics Netherlands’ consumer confidence survey.

Consumers much more sombre about the economy

Consumers are substantially more pessimistic about the economic situation in the Netherlands in October than they were in September: after correction for seasonal effects, this component fell by 7 points. Consumers are more negative about both the economy in the last twelve months and developments in the coming twelve months. This is reflected in the number of people who say they expect unemployment to rise, while it was precisely this aspect on which consumers were more optimistic in recent months.

Consumers slightly less willing to buy

Willingness to buy is 3 points lower in October than in September after adjustment for seasonal effects. This component is based on consumers’ opinions on their own financial situation and on whether they think it is a good time to purchase expensive items. Consumers are more sombre about their own financial situation in the coming twelve months in particular. In addition they are more negative in October than in September about buying large items like furniture.

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