Netherlands: Consumer confidence rises but remains pessimistic in December
Consumer confidence rose to minus 52.0 in December from November’s minus 57.0. December’s result marked the strongest sentiment since July. Despite the uptick, the index remained entrenched below the 0-threshold, separating pessimism from optimism among consumers.
The reading reflected an improvement in consumers assessments regarding the economic climate in the next 12 months. Furthermore, their assessment regarding the economic situation of the last 12 months was less negative. There was also an improvement in consumers buying intentions, which rose again from Octobers all-time low. In particular, consumers became less pessimistic about their financial situation over the next 12 months and over the last 12 months.
Going forward, consumer confidence is likely to continue improving thanks to generous fiscal support, including the governments introduction of a monthly energy bill discount of EUR 190 as of November and an energy price cap from January 2023. That said, high inflation and interest rates will keep sentiment weak nonetheless, which will weigh on private consumption next year.