AMSTERDAM (Reuters) - Strong exports prodded the Dutch economy to 0.2 percent growth in the second quarter as business confidence data pointed to tougher times ahead, providing a subdued economic backdrop to coalition talks following an inconclusive election.
The Liberal and Labour parties are hoping to form a government following the parliamentary elections on Sept 12.
But negotiations are at an early stage, and the parties differ in their policies on the pace and scale of the spending cuts needed to bring the country's budget deficit in line with European Union targets, and on the need for economic stimulus.
Finance Minister Jan Kees de Jager and Central Bank President Klaas Knot will brief the parties on fiscal issues later on Monday.
The economy grew 0.2 percent between March and June compared with the first quarter, final data confirming an earlier estimated showed.
But it contracted 0.4 percent year on year, and consumer and public spending and private- and public-sector investments all fell.
ABN AMRO economist Nico Klene said he expected the Dutch economy to drop quarter on quarter in the third quarter, an impression reinforced by Monday's business confidence data.
The confidence index fell to -6.7 points in September from -4.6 points in August, showing a growing number of businesses were pessimistic about their prospects over the coming three months
Klene said the industrial sector was particularly sensitive to the economic cycle and only represented about 15 percent of GDP.
"It is indicative but you cannot draw conclusions for the whole economy. It can bounce back again next month," he said.
"We are expecting (modest economic) ...growth again in the fourth quarter."
(Reporting By Thomas Escritt and Gilbert Kreijger; Editing by John Stonestreet)
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