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Tuesday, 20 May 2025 - 22:00

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Dutch consumer confidence stuck at deep low for second month

Consumer confidence in the Netherlands remained unchanged in May, holding at -37 for the second consecutive month, according to new figures released Tuesday by Statistics Netherlands (CBS). The indicator has not been this low in over a year and a half and continues to reflect deep pessimism among Dutch households.

CBS reported that consumer confidence, which combines assessments of the economy and household finances, is still far below its 20-year average of -10. The index hit an all-time high of 36 in January 2000 and reached a historic low of -59 in both September and October 2022. Since the end of a modest recovery in late 2024, confidence has been steadily declining again.

The current index level of -37 marks the lowest point since September 2023, when confidence stood at -39. CBS has measured consumer confidence monthly since April 1986 through its consumer sentiment survey, based on five equally weighted subquestions. For each question, CBS calculates the balance between positive and negative responses. The final index ranges from +100—if all responses are positive—to -100 when all are negative.

Dutch consumers remained equally negative about the economic climate in May as in April. The subindicator measuring sentiment toward the economy was unchanged at -61. Willingness to make large purchases deteriorated slightly in May. The subindicator for the "readiness to buy" dropped to -21, compared to -20 in April.

There was a slight improvement in expectations for the economic situation over the next 12 months, but consumers’ judgment of the economy over the past 12 months did not change. Both indicators remain severely negative, contributing to the overall stagnation in confidence.

CBS noted that consumers were marginally more pessimistic about their personal financial situation over the past year, as well as for the coming 12 months. They also viewed the current moment as less favorable for making major purchases.

After reaching -21 in September 2024, the consumer confidence index has been on a consistent downward trajectory. The index fell to -22 in October, -25 in November, and -26 in December 2024. That trend continued in early 2025, with the index dropping to -28 in January, -32 in February, -34 in March, and -37 in April, a figure that persisted into May.

This steady decline marks the end of a short-lived recovery that followed the record lows of 2022. In 2023, the index had gradually improved from -49 in January to -29 in December, but sentiment began turning again in fall 2024.

CBS data also shows a steep descent in consumer confidence since mid-2021. In June 2021, the index stood at -3. By December 2021, it had fallen to -26, then dropped further through 2022, reaching -59 by September and October— the lowest levels ever recorded.

A gradual recovery began in early 2023, with the index fluctuating between -49 in January and -29 in December. The reversal began in January 2025 and continues as households remain deeply concerned about their finances and the national economy.

Investor confidence has also shown signs of weakening in recent weeks as Dutch stock markets reversed earlier gains. Analysts point to mounting uncertainty over interest rates, international trade tensions, and the ongoing decline in consumer sentiment as key factors behind the shift in market mood. According to CBS, falling share prices contributed to a less favorable investment climate in May.

While business investment rose modestly in March, conditions worsened by May. CBS noted that declining equity prices played a significant role in the deterioration, alongside a continued slump in consumer confidence. Market analysts warn that if uncertainty persists, growing skepticism among investors could slow capital flows into key sectors of the Dutch economy.

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