Consumers were less gloomy in December than they were in November. This was reported by Statistics Netherlands (CBS). However, consumer confidence remains exceptionally low. Confidence stands at -52 in December, versus -57 in November. Consumers were less negative about the economy, and willingness to buy was less negative as well. “Euphoria seems out of place to me,” says BNR in-house economist Han de Jong.
According to De Jong, the euphoria is misplaced, but it’s good news nonetheless. “It’s better to get up than fall down.” The economist does not label the figure as an accident and sees the same picture in neighboring countries. “In the last couple of months you can also see the confidence of producers increasing, things are going a little less badly.”
Sum
As a possible explanation, De Jong sees a sum of small bright spots. ‘I would say that we as consumers have received a tremendous amount of bad news over the last few months. In recent months the situation has improved slightly; 190 euros have been deposited twice, the price ceiling will continue, inflation has decreased slightly, pensions have been increased slightly, the minimum wage and the state pension will increase on January 1st. These are all small positive things; the consumer remains under pressure, yet things are improving a bit.’
recession
One wonders whether this will continue in light of the approaching recession. ‘The erosion of purchasing power is huge, the government is taking part of it. De Nederlandsche Bank released a report and comments yesterday; what Olaf Slijper said was remarkable: ‘We are very close to a recession. Today’s figures seem to confirm DNB’s picture.’
Consumer confidence in December was -52, well below the average of the last twenty years (-9). Confidence reached an all-time high (36) in January 2000 and an all-time low (-59) in September and October 2022. Statistics Netherlands has been measuring consumer confidence every month since April 1986.
Willingness to buy is also less negative
Willingness to buy was -43 in December, up slightly from minus 46 in November. In December, in particular, the assessments on the financial situation for the next twelve months are less negative. Slightly less negative is the opinion on the financial situation of the last twelve months. Consumers also found the time to make big purchases slightly less unfavorable than in November.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
