Dutch biz confidence slightly less negative again as Q2 2024 starts

A shortage of staff remains the main obstacle for business owners, who are seeking to improve employment conditions and introduce automation in response, a Statistics Netherlands (CBS) release said.

The Netherlands Business Survey (COEN) was conducted by CBS, the Dutch Chamber of Commerce (KvK), the EIB, the Dutch Organisation for Small and Medium-Sized Enterprises (MKB-Nederland) and the Dutch Employers’ Organisation (VNO-NCW) in April.

Business confidence declined sharply between the end of 2021 and the end of 2022, reaching a low of -22.2. There has been a tentative recovery since then.

At the start of Q2 2024, the sentiment indicator rose slightly for the second consecutive quarter. However, business confidence remains below the average (minus 4.1) for the series since 2012.

Labour shortage is still the most frequently cited obstacle for businesses, and was identified by over 36 per cent of respondents. For the first time in nearly two years, this share rose slightly compared to the previous quarter.

Nevertheless, it is still below the mid-2022 peak, when nearly 48 percent of business owners reported the shortage of labour as an issue. Since then, business owners have increasingly been citing weak demand as an obstacle (nearly 21 per cent).

The issue of weak demand was mentioned the most frequently in manufacturing, at 27 per cent.

Nearly 70 per cent of business owners report staff shortages. Businesses are responding to this in various ways. Nearly 34 per cent say they are improving working conditions. This is the most frequently mentioned approach across almost all sectors.

About a quarter of business owners are introducing more automation in response to staff shortages; in manufacturing, almost a third are taking this approach.

Just over 12 per cent say they are bringing in more labour from abroad.

Fibre2Fashion News Desk (DS)