9 March 2000
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Finnish consumers' confidence in the economy still strong
Finnish consumers' confidence in the economy continues strong. In February, the consumer confidence indicator stood at 17.6, or almost the same as in January. Consumers' views on both their own and the country's economy have improved further. In contrast, purchasing consumer durables was not considered as worthwhile in February as in January. Saving by investing in securities has grown rapidly in popularity in the early part of the year. The data are based on Statistics Finland's Consumer Survey, for which 1,547 persons resident in Finland were interviewed between 7 and 24 February.
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Consumer views on economic and financial conditions in Finland in February 2000 |
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11 - 12/1999 balance |
1/2000 balance |
2/2000 balance |
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Consumer confidence indicator |
15.6 |
18.3 |
17.6 |
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Economic situation of households in 12 months' time |
10.6 |
12.0 |
13.1 |
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General economic situation in 12 months' time |
12.7 |
15.3 |
17.1 |
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Unemployment in 12 months' time |
-23.1 |
-24.0 |
-24.5 |
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Price trend over the next 12 months, % |
2.3 |
2.4 |
2.5 |
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Financial situation of households at present |
25.3 |
28.1 |
27.4 |
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Favourable time to make major purchases at present |
26.0 |
30.9 |
26.0 |
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Favourable time to save at present |
5.1 |
5.2 |
9.8 |
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Favourable time to raise a loan at present |
25.7 |
27.1 |
25.5 |
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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 February, 43 per cent of Finnish consumers expected that the country's economic situation would improve further in the next 12 months. Thirty-one per cent of consumers were confident that their own economy would improve. Fifty-seven per cent of consumers believed that unemployment would continue to fall further. In addition, consumers estimated that inflation would be 2.5 per cent in February 2001.
More consumers than previously, or 59 per cent, considered saving worthwhile in February, and 69 per cent of households were confident they would be able to lay aside some money in the next 12 months. Of them, 48 per cent intended to invest their savings in shares and other securities. Seventy-two per cent of consumers viewed the time favourable for raising a loan and 14 per cent of households planned to do so in the next 12 months. Some were also thinking of raising a loan to purchase securities.
At the time of the interview, 50 per cent of consumers regarded the time favourable for making major purchases. Ten per cent of households were considering buying a car in the next six months, and 6 per cent were thinking of buying a dwelling in the next 12 months.
In February, the only EU Member States where consumers were more confident about economic development than in Finland were the Netherlands and Ireland. The average confidence indicator of the EU Member States fell from 1 to 0 in February.
Source: Consumer Survey 2000, February. Statistics Finland