1 September 2000
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Time less favourable for buying consumer durables
Finnish consumers' confidence in the positive development of both their own and Finland's economy is unchanged, but the time is not considered as favourable for purchasing major durables as before. For that reason, the consumer confidence indicator was in August a few points lower than in July or a year ago, i.e. at 11.7. The data are based on Statistics Finland's Consumer Survey, for which 1,607 persons resident in Finland were interviewed between 7 and 24 August.
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Consumer views on economic and financial conditions in Finland in August 2000 |
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August 2000 balance |
July 2000 balance |
August 1999* balance |
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Consumer confidence indicator |
11.7 |
14.5 |
14.0 |
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Economic situation of households in 12 months' time |
10.3 |
9.9 |
8.0 |
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General economic situation in 12 months' time |
11.3 |
12.1 |
10.6 |
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Unemployment in 12 months' time |
-19.1 |
-21.0 |
-20.4 |
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Price trend over the next 12 months, % |
2.6 |
2.8 |
2.1 |
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Financial situation of households at present |
23.4 |
26.7 |
24.2 |
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Favourable time to make major purchases at present |
8.4 |
20.0 |
25.0 |
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Favourable time to save at present |
7.9 |
5.9 |
2.0 |
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Favourable time to raise a loan at present |
11.8 |
10.5 |
38.6 |
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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 making major purchases fell to 39 per cent in August from July's 46 per cent. However, various consumption intentions were still strong, and especially home furnishing and entertainment electronics were found tempting in August. Seven per cent of households were thinking of buying a dwelling in the next 12 months, while this figure had been only 4 per cent in July. Eight per cent of households intended to buy a car in the next six months.
Consumers' views on saving and borrowing were more or less unchanged. In August, 56 per cent of consumers considered the time favourable for saving. Sixty-four per cent of households were confident they would be able to lay aside some money in the next 12 months. Fifty-seven 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.
In August, 35 per cent of consumers expected the country's economic situation to improve further in the next 12 months. Twenty-seven per cent of consumers were confident that their own economy would improve. Forty-eight per cent of consumers believed that unemployment would decline further in the next 12 months. In addition, consumers estimated that inflation would be 2.6 per cent in August 2001.
The seasonally adjusted confidence indicator of the EU Member States was 0 in July, while in Finland it stood at 13. The Netherlands, Ireland and Sweden were the only countries where consumers were more confident about the positive development of the economy than Finland.
Source: Consumer Survey 2000, August. Statistics Finland