Finnish consumers' confidence in the economy slightly weaker in March

In March, the consumer confidence indicator was 14.7, or about three points lower than in February. Consumers' views on the time being favourable for purchasing consumer durables have deteriorated, in particular. However, consumers' confidence in the economy is still strong, stronger than in March last year, for instance. The data are based on Statistics Finland's Consumer Survey, for which 1,577 persons resident in Finland were interviewed between 6 and 23 March.

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Consumer views on economic and financial conditions in Finland in March 2000
	March 1999* balance	February 2000 balance	March 2000 balance
Consumer confidence indicator	11.7	17.6	14.7

Economic situation of households in 12 months' time	8.4	13.1	11.1
General economic situation in 12 months' time	7.0	17.1	13.2
Unemployment in 12 months' time	-17.7	-24.5	-22.2
Price trend over the next 12 months, %	1.3	2.5	2.8

Financial situation of households at present	22.3	27.4	25.6
Favourable time to make major purchases at present	24.0	26.0	18.1
Favourable time to save at present	-5.5	9.8	11.9
Favourable time to raise a loan at present	36.1	25.5	18.8
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. * The data collection method for the Survey changed from January 2000, for which reason older data are not fully comparable.

In March, 37 per cent of Finnish consumers expected that the country's economic situation would improve further in the next 12 months. Twenty-eight per cent of consumers were confident that their own economy would improve. Fifty-five per cent of consumers believed that unemployment would continue to fall further. In addition, consumers estimated that inflation would be 2.8 per cent in March 2001.

Sixty per cent of consumers considered saving worthwhile in March. This proportion has grown steadily since last year's November. Seventy per cent of households were confident they would be able to lay aside some money in the next 12 months and 45 per cent of them intended to invest their savings in shares and other securities, too. Correspondingly, fewer consumers than before, or 65 per cent, viewed the time favourable for raising a loan. Nonetheless, 16 per cent of households planned to do so in the next 12 months. Some were also making plans for raising a loan to purchase securities, though still very cautiously.

The proportion of consumers who considered the time favourable for making major purchases fell to 45 per cent in March. More households than before, or 12 per cent, still intended to buy a car in the next six months, and 7 per cent were thinking of buying a dwelling in the next 12 months. Households' other consumption intentions also continued strong in March.

In March, four in five households had a mobile phone. Almost one half of households owned a PC and almost every third had their home computer connected to the Internet.

Source: Consumer Survey 2000, March. Statistics Finland