Record fall in consumer confidence

Tuesday 25 September 2007

Dutch confidence in the economy fell by its largest ever margin in September, taking the confidence index from +15 to -1. It is the first time the consumer confidence index has been negative for over a year.

Consumers are not only worried about the future, but say they are less likely to make major purchases, according to the latest figures from the statistics office CBS. Economists had expected a slight drop in consumer confidence to +13, news agency Betten said.

‘There has been a radical change of opinion,’ said economist Michiel Vergeer. ‘But we are not sure if it will transfer into the economy at large. It doesn’t appear that consumers have stopped shopping. They still think they have the money to buy tvs, clothes and furniture.’

The CBS research took place in the first 10 days of September when the news was dominated by the turmoil in the international financial markets caused by the US mortgage crisis. And consumers were prepared for a fall in spending power next year because of widespread leaks in advance of tax rises announced in the budget, Vergeer said.

© DutchNews.nl

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