Dutch consumption growth likely to pick up in coming quarters

Dutch consumer confidence is clearly being impacted by global economic uncertainty and financial market volatility. Consumer confidence had significantly dropped in February, mainly due to fall in consumer's opinion regarding economic conditions. However, another sub-indicator - willingness to buy - had also dropped. This development has to be observed closely as the willingness to buy indicator has historically being consistent with developments in private consumption.

However, consumption growth is expected to grow in the coming quarters in spite of these weak confidence figures. There are enough positive signs leading to that expectation. The tax cut by government by EUR 5 billion, lower rate of inflation and wider growth in employment give way for a solid growth in real disposable income in 2016 as compared to 2015.