2 August, 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 strong, but intentions to buy a car or a dwelling lower than in the first half of the year
Finnish consumers continue to believe in positive development of the economy. In July, the consumer confidence indicator was 14.5, or slightly higher than in June but lower than a year ago. The differences were almost entirely due to consumers' changing views about the time being favourable for buying major durables. The data are based on Statistics Finland's Consumer Survey, for which 1,622 persons resident in Finland were interviewed between 3 and 19 July.
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Consumer views on economic and financial conditions in Finland in July 2000 |
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July 2000 balance |
June 2000 balance |
July 1999* balance |
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Consumer confidence indicator |
14.5 |
13.1 |
15.9 |
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Economic situation of households in 12 months' time |
9.9 |
10.2 |
9.2 |
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General economic situation in 12 months' time |
12.1 |
12.1 |
12.1 |
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Unemployment in 12 months' time |
-21.0 |
-18.0 |
-21.4 |
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Price trend over the next 12 months, % |
2.8 |
2.7 |
1.8 |
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Financial situation of households at present |
26.7 |
26.2 |
25.0 |
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Favourable time to make major purchases at present |
20.0 |
14.2 |
28.2 |
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Favourable time to save at present |
5.9 |
5.1 |
-2.4 |
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Favourable time to raise a loan at present |
10.5 |
10.8 |
39.2 |
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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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In July, 46 per cent of consumers considered the time favourable for making major purchases and various consumption intentions were still strong. However, the proportion of households intending to buy a car in the next six months fell in July to 7 per cent, while it had been over 10 per cent in the first half of the year. Fewer than earlier, or 4 per cent of households were thinking of buying a dwelling in the next 12 months.
In July, 55 per cent of consumers considered the time favourable for saving. Sixty-nine per cent of households were confident they would be able to lay aside some money in the next 12 months. The popularity of fund and insurance investing continued strong, but consumers also intended to make bank deposits in the same way as before. Fifty-eight per cent of consumers viewed the time favourable for raising a loan and 12 per cent of households planned to do so in the next 12 months.
In July, 35 per cent of consumers expected the country's economic situation to improve further in the next 12 months. Twenty-six per cent of consumers were confident that their own economy would improve. In July more consumers than in the April to June period, or 51 per cent, believed that unemployment would decline in the next 12 months. In addition, consumers estimated that inflation would be 2.8 per cent in July 2001.
Source: Consumer Survey 2000, July. Statistics Finland