3 May 2001
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumers' confidence in the economy weakened further in April
The consumer confidence indicator expressing consumers' views on the economy fell to 4.8 in April from March's 6.6. In April 2000 the consumer confidence indicator was 13.5. Views on Finland's economy have become even gloomier. In contrast, consumers' confidence in their own economy and saving possibilities was still strong. The data are based on Statistics Finland's Consumer Survey, for which 1,615 persons resident in Finland were interviewed between 2 and 20 April.
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Consumer views on economic and financial conditions in Finland in April 2001 |
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April 2001 balance |
March 2001 balance |
April 2000 balance |
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Consumer confidence indicator |
4.8 |
6.6 |
13.5 |
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Economic situation of households in 12 months' time |
10.2 |
11.2 |
10.6 |
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Households' saving possibilities in the next 12 months |
39.9 |
39.7 |
32.3 |
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General economic situation in 12 months' time |
-8.1 |
-4.9 |
10.8 |
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Unemployment in 12 months' time |
-4.2 |
-5.5 |
-17.1 |
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Price trend over the next 12 months, % |
3.1 |
3.0 |
2.6 |
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Financial situation of households at present |
25.6 |
27.4 |
26.0 |
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Favourable time to make major purchases at present |
13.8 |
14.1 |
15.0 |
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Favourable time to save at present |
13.7 |
14.4 |
14.9 |
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Favourable time to raise a loan at present |
8.5 |
7.5 |
20.8 |
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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. |
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In April only 17 per cent of consumers believed that Finland's economic situation would improve further in the next 12 months, while 32 per cent thought it would deteriorate. The corresponding proportions were 22 and 31 per cent in March and 36 and 14 per cent in April last year. Twenty-seven per cent of consumers were confident that their own economic situation would improve, which is approximately as many as before. Only 11 per cent of consumer thought their own economy would worsen.
In April 61 per cent of consumers considered saving worthwhile. Forty-two per cent thought the time was favourable for making major purchases, while 56 per cent believed the time was favourable for raising a loan. The financial situation of households was good. Of households, 72 per cent thought they would be able to lay aside some money in the next 12 months and 14 per cent intended to take out a loan.
Households still had several consumption intentions with regard to travelling and home repairs in April. Eight per cent of households planned to purchase a digital box or a digital television in early autumn at the latest when they will actually be launched for sale. Nine per cent of households contemplated buying a car in the next six months and five per cent thought of buying a dwelling in the next 12 months.
In April 34 per cent of consumers believed that unemployment would decline further in the next 12 months, whereas 36 per cent of consumers thought so in March and 47 per cent one year ago. Consumers estimated that inflation would be 3.1 per cent in April 2002.
Source: Consumer Survey 2001, April. Statistics Finland