Consumer confidence has fallen again and is lower than a month earlier. This was reported by Statistics Netherlands. Not only were consumers more negative about the economic climate, but more importantly, willingness to buy was more negative. According to BNR internal economist Han de Jong, the sentiment is in line with the deterioration of the Dutch economy across the board.
According to De Jong, consumer confidence fell sharply last year, fully in line with the sharp rise in inflation, but that confidence has since recovered. That process now seems to have come to an end, thinks De Jong. “Now he’s disturbed.”
Deteriorating economy
Was it predictable? De Jong thinks so given the deterioration he sees across the economic line: “significantly negative” industrial production, investments in fixed assets that are also negative, economic contraction in the first quarter, companies that in surveys indicate that things are not going well with order taking and faltering exports. ‘Our economy is deteriorating across the board.’
Our economy is deteriorating across the board
Tight labor market, but without tools
Perhaps the only bright spot is that the job market is so tight. This could lead to a short and mild recession. Otherwise, there is little to cheer about, not least because the government has few tools to effectively fight a recession. De Jong hints at the difference between the past and the current situation: back then, politicians had room to stimulate with cuts in interest rates and public spending, but that set of tools is gone.
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.
