Entrepreneurs more optimistic about 2022

Man unloading a truck
© Hollandse Hoogte / Peter Hilz
Dutch entrepreneurs expect higher investments, more turnover and higher staffing levels in 2022. For the short term as well, they are predominantly positive. Business confidence improved slightly at the start of Q4 2021. The confidence indicator was mainly more positive in construction, while it deteriorated among a number of sectors. This is reported by Statistics Netherlands (CBS), the Dutch Chamber of Commerce (KvK), the Economic Institute for Construction and Housing (EIB), the Dutch Organisation for Small and Medium-Sized Enterprises (MKB-Nederland) and the Dutch Employers’ Organisation (VNO-NCW) on the basis of the Netherlands Business Survey (COEN).

The data for this survey were collected in early October 2021

Dutch entrepreneurs not only have higher expectations for 2022 than they did last year for 2021, but their outlook is also more positive compared to previous years. Nearly 34 percent of entrepreneurs expect higher staff numbers in 2022 compared to 2021, while less than 5 percent expect lower numbers. It is worth noting that more and more entrepreneurs are having difficulty finding personnel. At the beginning of October 2021, more than 30 percent of entrepreneurs indicated they were hampered by staff shortages. This was still around 23 percent in July.

Higher investments and turnover

Entrepreneurs anticipating an increase in investments in 2022 outnumber those expecting a decrease: on balance over 15 percent. Last year, lower investments were expected for 2021. On balance more than 37 percent anticipate higher turnover than in the current year, versus nearly 18 percent one year previously. As for foreign turnover, on balance almost 23 percent expect improvement in the next year.

Business confidence increases slightly

At the beginning of Q4 2021, business confidence stood at 19.8. This is 1 point up on the previous quarter and the highest level since the start of measurements in 2008. As of Q2 2021, entrepreneurial confidence is positive again, following a deep trough as a result of the coronavirus crisis.

Mood predominantly positive across the sectors

Business confidence was positive in all sectors, although a decline was seen in several. The drop in confidence was most notable in car trade, mainly because car traders expect less turnover in Q4. Entrepreneurs in accommodation and food services were also less optimistic than in the previous quarter, although confidence continued to be the highest among all sectors. Entrepreneurs in this sector indicated that both turnover and the economic climate had improved over the previous three months relative to Q2, when stricter COVID-19 measures were in force. They were considerably less positive about the expected turnover in the three months ahead than at the start of July. The construction sector, on the other hand, showed significantly more confidence. Entrepreneurs in this sector were more positive about their order positions and output over the previous three months; they were also more optimistic about expected staffing levels.

Sources

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