Dutch Consumer Confidence Declines on Credit-Crisis Concerns

By Jurjen van de Pol

Oct. 28 (Bloomberg) -- Dutch consumer confidence fell in October on concerns the credit crisis will damp economic growth and hit households' finances.

The consumer-confidence index in the euro area's fifth- largest economy declined to minus 27 this month from minus 22 in September, The Hague-based National Statistics Bureau said on its Web site today. Economists expected the index to fall to minus 30, according to the median of seven estimates in a Bloomberg survey.

``Consumers were particularly gloomy about the economic climate,'' the bureau said, adding that confidence in the outlook for the economy took ``a big hit.''

The euro-area economy risks slipping into a recession, with manufacturing and service industries contracting at a record pace in October and German business confidence at a five-year low. The Dutch government forecasts the Netherlands' growth rate will fall to 1.25 percent next year, which would be the lowest since 2003, as exports and investments slow.

Consumers were less willing to spend money on big purchases such as washing machines and cars, as this sub-index declined to the lowest since the beginning of 2006, the statistics bureau said. Households were more negative about their financial situation in the next 12 months, according to today's report.

The Dutch producer confidence index fell to minus 6.1 this month from minus 0.5 in September, the statistics bureau said in a separate report today.

To contact the reporter on this story: Jurjen van de Pol in Amsterdam jvandepol@bloomberg.net