Outside the dotted line: more favourable than average.
Conditions for households hardly changed
Conditions for Dutch household consumption are equally favourable in April 2018 as in March. New data have become available for each of the six indicators. Three indicators improved slightly, one deteriorated considerably and two did not change. Household consumption is affected by consumers’ expectations, their personal financial situation and developments on the job market. Although the Radar indicators show a strong correlation with household consumption, improved circumstances are not necessarily translated into increased growth.
The increase in house prices was bigger than in the previous month. Furthermore, manufacturers’ expectations on future employment in their sector and consumers’ expectations about their own financial situation in the next twelve months were slightly more positive than in the previous month. On the other hand, the rise of share prices on an annual basis was considerably less substantial than in the previous month. Consumers’ expectations about future unemployment did not change, and the growth of the employed labour force on an annual basis equalled growth in the previous month.
Explanatory notes: Consumption Radar.