1 February 2002
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumers' confidence in the economy strengthened further in January
Finns' economic sentiments have improved clearly over the last few months. The consumer confidence indicator stood at 10.5 in January, while it was 6.9 in December and 3.5 in November. Consumers' confidence in the favourable development of both their own and Finland's economy strengthened in January. In contrast, it was estimated that inflation has accelerated and the time was considered less favourable than before for buying consumer durables. The data are based on Statistics Finland's Consumer Survey, for which 1,628 persons resident in Finland were interviewed between 7 and 24 January.
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Consumer views on economic and financial conditions in Finland in January 2002 |
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January 2002 balance |
December 2001 balance |
January 2001 balance |
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Consumer confidence indicator |
10.5 |
6.9 |
20.1 |
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Own economic situation in 12 months' time |
10.6 |
8.0 |
12.3 |
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Households' saving possibilities in the next 12 months |
39.3 |
36.5 |
40.2 |
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General economic situation in Finland in 12 months' time |
3.4 |
-3.2 |
6.8 |
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Unemployment in 12 months' time |
11.4 |
13.8 |
-21.2 |
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Price trend over the next 12 months. % |
1.4 |
2.5 |
2.9 |
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Financial situation of households at present |
25.4 |
24.3 |
26.5 |
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Favourable time to make major purchases at present |
-2.0 |
11.2 |
19.1 |
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Favourable time to save at present |
16.5 |
15.6 |
14.0 |
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Favourable time to raise a loan at present |
21.9 |
24.3 |
6.4 |
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The balance figures are obtained by deducting the weighted proportion of negative answers from that of positive answers. The positive balance figure for unemployment means that unemployment is estimated to go up. The consumer confidence indicator is the average of the balance figures for four questions concerning the next 12 months: own and Finland's economy, households' saving possibilities and unemployment (with changed sign). The balance figures and the confidence indicator can range between -100 and 100. |
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In January 30 per cent of consumers expected Finland's economic situation to improve this year while 23 per cent estimated the country's economy to deteriorate further. The corresponding proportions for December were 24 and 29 per cent. Optimists have last outnumbered pessimists in February 2001. In January a few percentage points more than in December believed that their own economic situation would improve, that is, 27 per cent of consumers. Only 9 per cent of consumers were concerned that their own economic situation would worsen this year.
Consumers assess price rises to have quickened
Consumers estimated that the rate of inflation had accelerated in January to 2.8 per cent. According to consumers, prices rose most in the Helsinki region and least in Eastern and Northern Finland. In December prices were assessed to have risen by 1.9 per cent. Consumers estimated that inflation would be only 1.4 per cent in next year's January.
In January 34 per cent of consumers considered the time was favourable for buying consumer durables, but slightly more thought it was unfavourable, that is, 36 per cent. These proportions were 42 and 30 per cent in December. Those who viewed the time unfavourable for making purchases had last been in the majority in August 1991. Consumers still had several consumption intentions in January, such as travel plans. Ten per cent of households intended to buy a car in the next six months and six per cent were thinking of buying a dwelling this year. The number of households in Finland is about 2.4 million.
In January 65 per cent of consumers thought the time was favourable for raising a loan and 15 per cent of households planned to take out a loan in the next 12 months. In January 63 per cent of consumers considered saving worthwhile and 73 per cent believed they would be able to lay aside money in 2002.
Of consumers 41 per cent estimated that unemployment will start to increase this year. The corresponding proportion was 45 per cent in December. Just 9 per cent of employed persons feared they would themselves become unemployed in 2002. In December this was the case for 11 per cent of employed persons.
Source: Consumer Survey 2002, January. Statistics Finland