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Marcel Klok, Senior Economist at ING, notes that the Economic Sentiment Indicator for the Netherlands rose from 110.5 in April to 111.7 in May which supports their outlook for above-potential growth for the second quarter.

Key Quotes

“While consumer confidence fell a little in May, possibly due to increasing fuel prices and a less positive outlook for the year ahead, business confidence rose in all sectors, including retail trade and construction. In industry, production fell slightly in recent months and production expectations and new orders including export orders were more favourably judged.”

“With the disappointing trade performance in the first quarter, Dutch GDP growth fell from 0.7% in 4Q to 0.5% QoQ 2018, in line with the slowdown in the Eurozone as domestic demand turned out very strong in the first quarter. Continued momentum in the housing market, increasing employment, upward wage pressure, above average levels of both consumer and business confidence as well as fiscal expansion are expected to boost domestic demand further in the second quarter.”

“While not at historical records, the current level of the ESI for the Netherlands is favourable going forward.”