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Consumer confidence collapsed in March. The decline in the National Bank’s indicator equals the record decline of the corona outbreak. The Russian invasion of Ukraine and sharp price increases undermined the confidence of Belgian consumers.
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jvhSource: BELGIAN
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In February, consumer confidence was still at 1. A month later, it will be -16. The drop is the same as in April 2020, when the global corona crisis had just broken out. In April 2020, consumer confidence was even lower (-26).
“The war in Ukraine and the sudden price hikes sharply undermined consumer confidence in March. This is 17 points lower, albeit the sharpest decrease – of the same magnitude as that at the start of the health crisis – since the indicator’s existence (1985)”, according to the National Bank.
The decline manifests itself in all sub-indicators of consumer confidence. Some record the sharpest decline ever, for example consumer prospects for the general economic situation in Belgium. The sub-indicator fell from -11 in February to -47, also good for an all-time low.
The war and energy prices also affect expectations about their own financial situation. “Households expect their own financial situation to deteriorate as never seen before. The low reached this month is much lower than the level at the beginning of the corona crisis.”
Expectations about the labor market are also much lower, but the decline is much less pronounced. Savings prospects have also clearly weakened.
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