Copyright nltimes
After months of restraint, Dutch consumers seem to be increasing their spending slightly, according to ING researchers analyzing the bank’s transaction data. ING predicts the trend will continue, supported by rising wages and stronger consumer confidence. Researchers also report a slight increase in Dutch consumer confidence in the third quarter. This improvement is largely due to reduced pessimism about the economy and personal finances. Meanwhile, real wages, adjusted for inflation, continued to rise during this period. The researchers examined whether this combination had boosted discretionary spending, using ING transaction data. The data indicate that such spending, adjusted for inflation, rose by 1 percent. They describe this as a “clear improvement” from the second quarter, when the increase was just 0.2 percent. Spending increased particularly on fashion, home furnishings, travel, recreation, and cultural activities. ING notes that the growth in these “non-essential” categories suggests that consumers are becoming somewhat less cautious in their spending. ING expects consumer confidence to continue rising in the coming quarters. The researchers also forecast a slowdown in inflation next year and an improvement in household purchasing power.
