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Particularly, consumers' willingness to buy has turned more negative, indicating a shift in consumer behaviour and spending habits.
The current consumer confidence indicator is significantly below its long-term average of minus 10 over the past two decades. The indicator reached its highest point at 36 in January 2000, while an all-time low of minus 59 was witnessed in September and October 2022, as per CBS.
Furthermore, consumers' outlook on the economy has also tilted towards the negative in June. The component indicator for this sentiment has dropped to minus 54 from minus 53 in May. The data suggests that consumers are growing more pessimistic about the economic landscape in the coming year. However, their views on the economy's performance over the past year have turned slightly less negative.
Consumers' willingness to buy dropped to minus 29 in June from minus 28 in May. This decrease in the willingness to spend is reflected in their more negative views about both their financial situation in the next twelve months and their financial situation over the past twelve months. Additionally, consumers expressed a higher level of negativity about making large purchases in June than they did in May.
Fibre2Fashion News Desk (DP)