Dutch Consumer Confidence Drops as War on Iran Fuels Economic Uncertainty
Data from Statistics Netherlands (CBS), cited by NOS News, shows that consumer confidence fell to -44 in April, representing one of the sharpest monthly declines in recent years.
CBS explains that a neutral confidence level is measured at zero, where positive and negative consumer sentiment are evenly balanced across the population.
Economist Frank Notten noted that the recent drop from -30 in March to -44 in April was “truly exceptionally high” and marked the second-largest monthly decline since records began in 1986. He also pointed out that confidence previously reached a historic low of -59 in September 2022 during the energy crisis triggered by the war in Ukraine.
Notten suggested that consumer sentiment is increasingly influenced by geopolitical developments. He said, “Since Trump came to power, news has been coming thick as fast, and consumer confidence seems to be following this pattern,” referring to the combined impact of the Middle East conflict and wider international uncertainty.
CBS stated that it cannot attribute the decline to a single cause but acknowledged that global tensions are contributing to weaker household expectations. Rising costs, including fuel prices, are also prompting consumers to delay major purchases and focus spending on essentials.
“You always need groceries, and it is easier to cut back on larger purchases,” Notten said, highlighting shifting consumer behavior under economic pressure.
While CBS warned that sharp drops in confidence can signal slower economic activity, it also noted that sentiment can recover quickly depending on changes in broader economic and geopolitical conditions.
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