Consumers in Netherlands are spending less on shopping but more at restaurants
People in the Netherlands are spending less on shopping but more at restaurants, NOS reported on Friday based on an analysis of ING customers' debit card payments in the second quarter of this year.
Total spending by ING customers, including debit card transactions, cash withdrawals, and internet payments, increased by nearly 2 percent compared to the first quarter. This growth was primarily driven by the hospitality industry, which saw a 4 percent increase. ING economist Marten van Garderen attributed this trend partly to the favorable weather in April, May, and June.
However, when it comes to physical stores, consumers were more cautious with their spending. Several sectors experienced declines, with electronics stores (-4 percent), home furnishing stores (-2.4 percent), and leisure articles (-2 percent) being the most affected.
Supermarkets witnessed a minor increase in debit card sales during the second quarter. However, It was observed Van Garderen observed that price hikes in shopping streets were usually higher than the increase in debit card sales. "In particular, for stores selling goods, there are evident signs of consumers scaling back their spending," he noted.
Statistics Netherlands (CBS) also released figures on consumer spending on Friday. In May 2023, households purchased 1.4 percent more products compared to May 2022. CBS also noted increased spending on services like catering and hairdressing while spending on clothing and electrical appliances decreased.