3 July, 2000
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Finnish consumers view time less favourable for making purchases and raising loans
Finnish consumers continue to believe in positive development of the economy. However, the consumer confidence indicator was lower in June than in the early part of the year or a year ago, and stood at 13.1. The indicator was brought down by consumers' weakened views of the time being favourable for making major purchases. Consumers also thought raising a loan had become distinctly less worthwhile than before. The data are based on Statistics Finland's Consumer Survey, for which 1,651 persons resident in Finland were interviewed between 5 and 21 June.
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Consumer views on economic and financial conditions in Finland in June 2000 |
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June 2000 balance |
May 2000 balance |
June 1999* balance |
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Consumer confidence indicator |
13.1 |
14.0 |
16.7 |
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Economic situation of households in 12 months' time |
10.2 |
11.2 |
10.5 |
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General economic situation in 12 months' time |
12.1 |
10.3 |
13.9 |
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Unemployment in 12 months' time |
-18.0 |
-15.0 |
-21.2 |
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Price trend over the next 12 months, % |
2.7 |
2.7 |
1.6 |
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Financial situation of households at present |
26.2 |
24.8 |
24.6 |
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Favourable time to make major purchases at present |
14.2 |
18.8 |
29.4 |
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Favourable time to save at present |
5.1 |
11.8 |
-3.4 |
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Favourable time to raise a loan at present |
10.8 |
15.4 |
42.0 |
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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. * The data collection method for the Survey changed from January 2000, for which reason older data are not fully comparable. |
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The proportion of consumers viewing the time favourable for raising a loan fell to 59 per cent in June from the 64 per cent it was in May. Nevertheless, 13 per cent of households contemplated raising a loan in the next twelve months.
In June, 43 per cent of consumers considered the time favourable for making major purchases. Although the proportion was down, households' consumption intentions were still strong and there were lots of travelling plans, in particular. Eight per cent of households intended to buy a car in the next six months and 6 per cent were thinking of buying a dwelling in the next 12 months.
Fifty-five per cent of consumers considered saving worthwhile in June. Households' financial situation was good and 70 per cent of them believed they would be able to lay aside some money in the next 12 months. Investing continued to grow in popularity and 25 per cent of all households intended to invest money in quoted shares, funds or other securities. Sixteen per cent intended to take part in various insurance savings schemes.
In June, 37 per cent of consumers expected that the country's economic situation would improve further in the next 12 months. Twenty-six per cent were confident that their own economy would improve. Forty-seven per cent of consumers believed that unemployment would decline in the next 12 months. In addition, consumers estimated that inflation would be 2.7 per cent in June 2001.
Source: Consumer Survey 2000, June. Statistics Finland