Weather and football affect confidence

20th June 2007, Comments 0 comments

20 June 2007, AMSTERDAM – The weather, terrorism and poor football results from the Dutch national team were significant reasons for the dip in consumer confidence from 2000 to 2003. Consumers were "markedly more pessimistic than would be expected in the economic circumstances" during this period, the Nederlandsche Bank (DNB) wrote in its quarterly report on Tuesday.

20 June 2007

AMSTERDAM – The weather, terrorism and poor football results from the Dutch national team were significant reasons for the dip in consumer confidence from 2000 to 2003. Consumers were "markedly more pessimistic than would be expected in the economic circumstances" during this period, the Nederlandsche Bank (DNB) wrote in its quarterly report on Tuesday.

DNB says the report, based on historical data from 1982 until February 2007, has "unravelled the ups and downs in consumer confidence." The study shows that the Dutch consumer's confidence is primarily based on developments on the labour market, the stock market, the housing market and inflation.

Consumer sentiment is also affected by psychological factors however. Temperature, rainfall, terrorism and Oranje's performances before the World Cup and European Championship were the most significant factors, say the researchers.

The 2000-2003 period was characterised by political unrest in the Netherlands, the war in Iraq and a number of large scandals at stock market listed companies. The Dutch national team also failed to qualify for the World Cup in Japan and Korea in 2002.

The researchers have calculated that the growth of consumer expenditures came out a quarter to a half percentage point lower because of the aforementioned factors. "These events probably influenced the low consumer confidence," they concluded. "Although to what extent this is the case cannot be quanitified."

[Copyright Expatica News + ANP 2007]

Subject: Dutch news

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