2 October, 2000
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumers less confident about the economy
The consumer confidence indicator expressing consumers' views on the economy fell to 9.1 in September, i.e. lowest since spring 1996. In particular, confidence in the positive development of Finland's economy was clearly weaker in September. For the first time in five years, the majority of consumers considered the time unfavourable for raising a loan. The data are based on Statistics Finland's Consumer Survey, for which 1,674 persons resident in Finland were interviewed between 4 and 20 September.
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Consumer views on economic and financial conditions in Finland in September 2000 |
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September 2000 balance |
August 2000 balance |
September 1999* balance |
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Consumer confidence indicator |
9.1 |
11.7 |
14.8 |
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Economic situation of households in 12 months' time |
8.1 |
10.3 |
8.1 |
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General economic situation in 12 months' time |
5.1 |
11.3 |
12.0 |
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Unemployment in 12 months' time |
-16.5 |
-19.1 |
-22.9 |
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Price trend over the next 12 months, % |
2.7 |
2.6 |
2.0 |
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Financial situation of households at present |
24.7 |
23.4 |
21.1 |
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Favourable time to make major purchases at present |
7.5 |
8.4 |
28.5 |
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Favourable time to save at present |
5.9 |
7.9 |
0.8 |
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Favourable time to raise a loan at present |
-4.9 |
11.8 |
34.9 |
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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 believing that the economic situation of Finland would improve further in the next 12 months fell to 30 per cent in September from August's 35 per cent. At the same time, the proportion of those expecting the economic growth to slow down rose from 12 to 20 per cent. In September, 12 per cent of consumers, or three percentage points more than a month before, thought their own economic situation would deteriorate in the next 12 months. Almost as many as in August were confident that their own economy would improve, i.e. 26 per cent of consumers.
Forty-four per cent of consumers viewed the time favourable for raising a loan, while the figure in August was still 57 per cent. Intentions to take out a loan did not, however, diminish, as 15 per cent of households still intended to do so in the next 12 months. In September, 55 per cent of consumers considered it worthwhile to save money, and 66 per cent of households believed they would be able to lay aside some money in the next 12 months.
In September, 40 per cent of consumers thought the time favourable for making major purchases. Various consumption intentions continued strong, home furnishing and entertainment electronics being still popular. In September, 6 per cent of households were thinking of buying a dwelling in the next 12 months. Eight per cent of households intended to buy a car in the next six months.
In September, 46 per cent of consumers believed that unemployment would decline further in the next 12 months. In addition, consumers estimated that inflation would be 2.7 per cent in September 2001.
Source: Consumer Survey 2000, September. Statistics Finland