Netherlands: Consumer confidence falls in June
Consumer confidence came in at minus 39.0 in June, down from May’s minus 38.0. As a result, the index remained below the 0-threshold, indicating pessimism among consumers.
The deterioration was almost broad-based. Consumers were slightly less pessimistic about the economy in the past 12 months but were more negative about it the next 12 months. Moreover, they were more pessimistic about their financial situation over both the past 12 months and the next 12 months. Consumers were also more negative about their willingness to make large purchases.
Consumer pessimism should gradually decline due to energy price caps, rising wages and lower inflation. That said, high levels of private debt and further rate hikes from the ECB will continue to make large purchases less attainable, capping the gains. Falling house prices—they declined 6% year on year in May—are a key factor to watch. On the one hand, the recent decline will increase affordability. On the other hand, it reduces the net worth of existing homeowners.