2 November, 2000
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumers' confidence in Finland's economy weakened further
The consumer confidence indicator expressing consumers' views on the economy was to 6.9 in October, i.e. good two points lower than in September. This year the consumer confidence indicator has declined altogether by about ten points. Views on Finland's economy, in particular, became dimmer in October. Estimates of the time being favourable for raising a loan weakened further. In contrast, consumers still had confidence in their own economy and saving was thought even more worthwhile. The data are based on Statistics Finland's Consumer Survey, for which 1,652 persons resident in Finland were interviewed between 2 and 20 October.
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Consumer views on economic and financial conditions in Finland in October 2000 |
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October 2000 balance |
September 2000 balance |
October 1999* balance |
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Consumer confidence indicator |
6.9 |
9.1 |
15.4 |
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Economic situation of households in 12 months' time |
9.4 |
8.1 |
9.8 |
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General economic situation in 12 months' time |
1.7 |
5.1 |
13.1 |
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Unemployment in 12 months' time |
-16.6 |
-16.5 |
-24.2 |
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Price trend over the next 12 months, % |
2.9 |
2.7 |
1.9 |
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Financial situation of households at present |
25.4 |
24.7 |
20.7 |
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Favourable time to make major purchases at present |
6.9 |
7.5 |
25.0 |
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Favourable time to save at present |
10.7 |
5.9 |
3.1 |
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Favourable time to raise a loan at present |
-11.2 |
-4.9 |
34.2 |
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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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The proportion of consumers believing that the economic situation of Finland would improve further in the next 12 months fell to 26 per cent in October from September's 30 per cent. In August and one year ago it was 35 per cent. The economic situation of Finland was also considered clearly worse at the time of the interview than a year earlier. However, as many as in September or last year were confident that their own economic situation would improve in the next 12 months, i.e. 27 per cent of consumers.
Thirty-eight per cent of consumers viewed the time favourable for raising a loan, while the figure in September was 44 per cent. One year ago three consumers out of four thought it worthwhile to take out a loan. Intentions to raise a loan also decreased slightly in October. Thirteen per cent of households intended to do so in the next 12 months. In October, 58 per cent of consumers considered it worthwhile to save money, and 69 per cent of households believed they would be able to lay aside some money in the next 12 months. The corresponding proportions were 55 and 66 per cent in September.
In October, 40 per cent of consumers thought the time favourable for making major purchases. Various consumption intentions continued strong, but fewer intended to buy a car or a dwelling than in the early part of the year. In October, 5 per cent of households considered buying a dwelling in the next 12 months. Eight per cent of households thought of buying a car in the next six months.
In October, 47 per cent of consumers believed that unemployment would decline further in the next 12 months. In addition, consumers estimated that inflation would be 2.9 per cent in October 2001.
The seasonally adjusted consumer confidence indicator of the EU Member States fell to -3 in September from August's 1, while in Finland it was 10 in September. In the Netherlands, Sweden and Ireland consumers were more confident than in Finland about the positive development of the economy.
Source: Consumer Survey 2000, October. Statistics Finland