No further improvement in consumer confidence

20/06/2014 09:30

The mood among Dutch consumers remained stable in June relative to May. The consumer confidence indicator remained unchanged at -2. Pessimists still outnumber optimists, though only just. Consumer confidence has risen almost continuously since the summer of 2013 and is now at the same level as at the end of 2007. On balance, consumers are optimistic about the economic situation, but, according to the Statistics Netherlands, their willingness-to-buy is still at a low ebb.

Consumer confidence, seasonally adjusted

Consumer confidence, seasonally adjusted

Optimistic about economic situation in general

Over the past four months, consumers have been positive about the economic climate. Consumers’ opinions about the economic climate over the past 12 months and next 12 months remained stable in June. The component indicator Economic climate remained unaltered at 10.

Willingness-to-buy still at a low level

Willingness-to-buy remained fairly stable in June relative to May. Consumers’ opinions about their personal financial situation over the past 12 months hardly changed, but their opinions about their personal financial situation in the next 12 months veered from cautiously optimistic to slightly negative. Consumers also thought the time to buy expensive items, like washing machines and TV sets, was about as unfavourable as in May. On balance, the component indicator Willingness-to-buy fell 1 point to -11. This means willingness-to-buy is still at a low level.

Pessimism about future unemployment

Having a paid job is very important for consumers’ willingness-to-buy. Dutch consumers are still pessimistic about future unemployment. In June, 50 percent of respondents expected unemployment to rise further in the next 12 months, whereas one in five anticipated a decline. Statistics Netherlands announced earlier that the number of jobs of employees has been in decline for quite some time.

Consumer confidence

Consumer confidence

More figures can be found in dossier Business cycle.

For more information on economic indicators, the reader is referred to the Economic Monitor.