Categories: Economy

Households Consume More, Despite Low Confidence Related articles

We all spent 6.2 percent more on consumption in January than in the same period a year earlier. This was reported by Statistics Netherlands. “Consumer confidence remains low, but that apparently doesn’t stop us from consuming less,” says CBS economist Frank Notten.

New data from Statistics Netherlands shows that household spending has increased significantly. “Not entirely unexpected,” Notten says, because last year we were still in isolation for most of January. “So we see that the consumption of services in particular has increased significantly.”

However, the increase is quite substantial. After all, consumer confidence is still very low. “Slightly less than the all-time low a few months ago, but still very low,” Notten said. Yet families spend more.

Consumer confidence is still very low. (ANP / Robin Utrecht)

Low unemployment rate

This is probably because most people have jobs. Unemployment remains very low. In addition, wages also continue to rise.’

But of course inflation also plays a role in the recent figures. This forces people to spend more. “We see, for example, that consumption of supermarket items has decreased, but that we have spent more on buying them,” Notten says. “The same goes for energy.”

Author: Samuel Hangreefs
Source: BNR

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