Dutch consumer confidence falls sharply amid Middle East conflict concerns, data shows

Consumer confidence in the Netherlands has fallen sharply as the war in the Middle East increasingly affects household financial expectations, NOS News reported on Wednesday, citing data from Statistics Netherlands (CBS).

Concerns over rising prices, including at the pump, are leading more consumers to postpone major purchases, according to CBS data.

CBS said consumer confidence dropped to -44 in April, marking one of the steepest monthly declines in recent years.

“With neutral consumer confidence, the CBS measurement stands at zero. One half of the population is positive, the other half negative,” economist Frank Notten was quoted as saying by the broadcaster.

He noted that confidence had previously fallen to a historic low of -59 in Sept. 2022 amid the energy crisis following the war in Ukraine.

Notten said the April decline from -30 in March to -44 was “truly exceptionally high,” and the second-largest drop since records began in 1986.

He said consumer sentiment appears closely linked to geopolitical developments.

“Since Trump came to power, news has been coming thick and fast, and consumer confidence seems to be following this pattern,” he said, pointing to the Middle East conflict and other global uncertainties.

CBS said it could not identify a single cause for the latest drop but noted that uncertainty over global events is weighing on household expectations.

Consumers told researchers that they are increasingly focused on essential spending while postponing larger purchases.

“You always need groceries, and it is easier to cut back on larger purchases,” Notten said.

CBS added that sharp declines in consumer confidence can often signal slower economic activity, although sentiment can also recover quickly depending on broader conditions.