Consumer confidence nosedives

Consumer confidence declined dramatically in August. The consumer confidence indicator fell 9 points to -21. Confidence in the economic climate nosedived, whereas willingness to buy remained stable.

Consumer confidence

Consumer confidence

Consumers were very pessimistic about the economic climate in August. The component indicator economic climate dropped by 22 points to -38. Consumers’ opinions on the economic situation in the next twelve months slumped by 25 points. It was the second dramatic decline in a short period of time. Confidence in the economic future had already fallen by 10 points in June. Consumers were also far more negative in August about the past twelve months than they were in July. Confidence in the economy over the past twelve months dropped by 21 points.

Economic climate, seasonally adjusted

Economic climate, seasonally adjusted

Unlike confidence in the economic climate, consumers’ willingness to buy remained stable. Although consumers were slightly more negative about their own financial situation, they thought the time was more favourable to buy expensive items. As a result, the component indicator willingness to buy dropped by 1 point to -10. Willingness to buy remains at a low level.

The mood among consumers is usually on a par with developments on the stock exchange. Currently, this is also the case. For more information on this subject see the article “Consumer confidence and share prices slump simultaneously”.

Consumer confidence, seasonally adjusted

Consumer confidence, seasonally adjusted

More figures can be found in dossier Business cycle.

For more information on Dutch consumer confidence, also see Statistics Netherlands’ online video on YouTube.