Consumer confidence down in August

Consumers are less positive about the economy of the Netherlands in August than they were in July. After correction for seasonal effects, the confidence index fell from -23 to -28. The decrease was caused by more negative opinions on the economic climate as well as a deterioration in willingness to buy.

Consumer confidence is low: for four years now there have been more pessimists than optimists. Consumers’ opinions on the economic climate in the coming twelve months and on their own financial situation in the near future were more negative in particular in August than in July 2005.

Consumers were less willing to spend their money, after adjustment for seasonal effects. Willingness to buy fell by 4 points to -24. The willingness to buy component is based on consumers’ opinions on the financial situation of their own household and on answers to the question of whether it is a good time to buy expensive items. In August their opinions on their own financial situation in the coming twelve months are substantially more pessimistic. And their feelings about their situation in the last twelve months were also more negative. Their opinions on whether it was a good time to spend money on expensive durable goods remained unchanged from last month.

After correction for seasonal effects, consumers’ opinions on the economic climate are more negative as well in August than in July. Consumers were especially pessimistic about the economic situation in the coming twelve months. Opinions on the economic climate in the last twelve months were slightly more negative than last month.

Dutch Consumer Confidence Surveys are held in the first ten weekdays of the month.According to various key indicators that have become available recently, the economic situation in the Netherlands improved in mid-August. However, by the time this slightly more positive information became available, the survey on consumer confidence in August was nearly completed.

Consumer confidence, seasonally adjusted