Interview: Consumer confidence in the Netherlands is recovering, but people continue to watch their pennies
Once again, after 4 months, consumer confidence has risen, according to Statistics Netherlands (CBS) with their monthly figures. In August, the figure was around -34, in the new statistics for September it went up by 1 to -33. 'Opinions on the economy are deteriorating and willingness to buy is improving', says Statistics Netherlands.
In May, the figure was at its lowest this year at -46, the last time the figure was this low was 4 years ago. This year's peak is at -23 in the month of January.
Consumer confidence statistics are measured through a monthly questionnaire. That list contains questions about what people think of the economy, their own financial situation and whether they think it is a favorable time for large purchases. The figure can range from -100 to +100. At -100, everyone would always answer negatively and vice versa. Consumer confidence also includes separate figures for the economic climate and willingness to buy.
The new statistics for September therefore indicate that consumer confidence is still negative, but that does not mean that people dare to spend less. "The Dutch certainly still spend money, but they are making more conscious choices," says retail expert Marc Houppermans. He notices more reluctance, especially with larger and non-essential purchases. In the supermarket, for example, this change is very visible. "Consumers pay closer attention to prices, compare more and more often choose private labels, offers and discounters," says Houppermans.
If people do start spending less, they start with expenses that are not necessary or can easily be postponed. You can think of catering, going out, clothing, luxury items, electronics and certain leisure expenses. In the supermarket, for example, people mainly change in the choice of what they want to spend their money on. 'Consumers are increasingly accepting that a cheaper product can also offer good quality. As a result, price-conscious shopping becomes less of a temporary reaction and more part of normal buying behaviour'. For example, an A-brand can be replaced by a private label or a product from the range with a discount.
'Consumer confidence is an important indicator, but you shouldn't equate it one-to-one with actual buying behaviour'. The calculated CBS figures give more of a picture of feeling and expectations. Ultimately, you will see from the shopping basket what people are really going to do next and where they think their money will provide the most value.
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