Dutch business confidence lowest since late 2005

AMSTERDAM: Dutch business confidence fell in April to its lowest level since the end of 2005, while consumer confidence also slipped, data showed on Thursday. Statistics Netherlands (CBS) said in a statement business confidence fell to plus 3 from plus 6.1 points in March, a level last seen in December 2005.

It said optimism fell about future production and orders after a 17-year high reached in March for orders. Companies remained positive about employment, while their view on their competitive position, at home and abroad, was stable. Data out on Thursday showed French business sentiment fell to its lowest level in nearly one-and-a-half years in April. That followed business sentiment data in Belgium on Wednesday which showed the biggest ever monthly drop to the lowest level since August 2005.

Meanwhile, consumer confidence continued a fall started in the middle of 2007 to reach minus 12, down from minus 9 in March, as shoppers became more pessimistic about the economic climate. The CBS said it had not seen such a negative mood among consumers since mid-2003, when the economy was stagnating and unemployment was rising.

That is not the case now, but the CBS noted the current instability in financial markets. Despite rising pessimism about the economy and their own financial situation, consumers were more willing in April to make large purchases than in March, the CBS said. Data also out on Thursday showed consumer spending rose 4.7 percent year-on-year in February compared with a revised 2.5 percent rise in January.