11 January, 2000
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, mailto:pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Finnish consumers' confidence in the economy still strong
In December, the consumer confidence indicator stood at 14.2, which is slightly higher than a year earlier. The indicator was brought up last year by consumers' improved views of the future of Finnish economy. In spite of this, purchasing consumer durables was not thought as worthwhile as before towards the end of the year. The data are based on Statistics Finland's Consumer Survey, for which 1,685 persons resident in Finland were interviewed between 13 and 20 December.
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Consumer views on economic and financial conditions in Finland in December 1999 |
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December 1998 balance |
November 1999 balance |
December 1999 balance |
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Consumer confidence indicator |
12.9 |
13.6 |
14.2 |
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Economic situation of households in 12 months' time |
10.8 |
8.9 |
9.8 |
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General economic situation in 12 months' time |
6.4 |
13.0 |
14.1 |
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Unemployment in 12 months' time |
-15.1 |
-24.1 |
-22.3 |
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Price trend over the next 12 months, % |
1.2 |
2.3 |
2.3 |
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Financial situation of households at present |
23.7 |
21.7 |
22.2 |
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Favourable time to make major purchases at present |
22.9 |
19.5 |
15.8 |
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Favourable time to save at present |
4.9 |
-1.7 |
0.9 |
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Favourable time to raise a loan at present |
35.5 |
26.9 |
27.1 |
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The balance figures are obtained by deducting the weighted proportion of negative answers from that of positive answers. The negative balance figure for unemployment means that unemployment is estimated to go down. The consumer confidence indicator is the average of the balance figures for the following questions: Finland's past and future economic development, past and future economic development of the respondent's own household, and whether it was a favourable time to make major purchases at present. The balance figures and the confidence indicator can range between -100 and 100. |
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In December, more than one third of Finnish consumers expected that the country's economic situation would improve further this year. One quarter of consumers were confident that their own economy would improve. More than half of consumers believed that unemployment would continue to fall further. In addition, consumers estimated that inflation would be 2.3 per cent in December 2000.
At the time of the interview, 43 per cent of consumers regarded the time favourable for making major purchases. Although consumers' views about the advantageousness of the time for making major purchases have weakened, intentions for making different purchases continued strong in December. For example, 36 per cent of households were planning to purchase entertainment electronics in the next six months. Seven per cent of households were considering buying a car, and 5 per cent were thinking of buying a dwelling this year.
In December, 68 per cent of consumers viewed the time favourable for raising a loan and 14 per cent of households planned to do so this year. Fifty per cent of consumers considered saving was worthwhile. Of various modes of saving, insurance and fund saving clearly gained in popularity last year. Sixty-four per cent of households were confident they would be able to lay aside some money this year.
By international comparison, Finnish consumers' views on the economy are optimistic. In December, the only EU Member States where consumers were more confident about economic development than in Finland were Ireland and the Netherlands. The average confidence indicator of the EU Member States went up and stood at 0 in December.
Source: Consumer Survey 1999, December. Statistics Finland