Consumer confidence fell to an all-time low of -50 in June, Statistics Netherlands reported on Wednesday. This is less than in April, when confidence was already at its lowest. The further below zero we are, the less confidence we have in the economy. The low figure is mainly due to willingness to buy, which is at an all-time low.
The Dutch are almost as pessimistic about the economy in June as they were in May, but the willingness to buy indicator has fallen from -33 to -37. People are negative about their financial situation, including that of the coming year, and find it a very unfavorable time to make major purchases. Never before have we been so negative about it, says CBS.
An important reason for this pessimism is high inflation. In May, life in the Netherlands became 8.8% more expensive than a year ago, mainly due to the sharp rise in energy prices. Moreover, the war in Ukraine is also making food more expensive, while almost every sector of our country is struggling with staff shortages. This combination drives up the prices.
Economists expect inflation to remain high for some time to come, and 31% of Dutch people polled by CBS also believe prices will rise more sharply in the coming year. On the other hand, 41% believe that unemployment will continue to fall for some time.
Over the past twenty years, the average consumer confidence has been -9. In January 2000, confidence reached an all-time high (36) and so this month it is at an all-time low.