Netherlands: Consumer confidence increases in January
Consumer confidence rose to minus 49.0 in January from December’s minus 52.0. January’s result marked the best reading since May 2022. 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. Meanwhile, their assessment regarding the economic situation of the last 12 months was unchanged. 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. That said, their assessment of their financial situation over the last 12 months was unchanged.
Consumer confidence should receive a boost in 2023 thanks to generous fiscal support, rising wages and falling inflation. That said, tighter financial conditions will weigh on private consumption this year.