Consumer confidence skyrockets to highest point in eight years

With reporting by Zack Newmark.

The mood among consumers improved significantly in June compared to the previous month. Consumer confidence rose by four percentage points and is now at six percent, reports Statistics Netherlands (CBS). This is the highest level seen in the Netherlands since 2007.

Confidence is rising mainly because consumers are viewing the economic climate more positively. The highest consumer confidence level in the last twenty years was 27, as measured in April 2000. The low point was hit during the financial crisis, when consumer confidence fell to -44 in February 2013. The average for the last two decades is eight points below zero (-8).

The positive feelings about the economic environment is scored at 21 in June compared to 13 in May, measured by the net amount of optimistic responses about the economic climate.

Propensity to consume is higher in June than a month ago. The indicator rose by two percentage points to the level of -3. This is mainly due to consumers feeling less pessimistic about their future financial situation.

Unemployment expectations also improved in June. Almost 40 percent of the respondents expect unemployment to decline in the next 12 months, whereas only 29 percent expect a rise.