1 March 2002
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumers have trust in their own economy and favour borrowing
Consumers' confidence in the economy strengthened further in February. The consumer confidence indicator stood at 13.4 in February, while it was 10.5 in January and 3.5 at its lowest in November. Consumers' views of their own economy, in particular, were bright in February. Consumers also assessed the development of unemployment more optimistically than in the previous months. Borrowing was considered worthwhile but the time was seen unfavourable for purchasing consumer durables. The data are based on Statistics Finland's Consumer Survey, for which 1,625 persons resident in Finland were interviewed between 4 and 22 February.
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Consumer views on economic and financial conditions in Finland in February 2002 |
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February 2002 balance |
January 2002 balance |
February 2001 balance |
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Consumer confidence indicator |
13.4 |
10.5 |
16.3 |
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Own economic situation in 12 months' time |
11.5 |
10.6 |
10.7 |
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Households' saving possibilities in the next 12 months |
40.8 |
39.3 |
35.6 |
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General economic situation in Finland in 12 months' time |
4.9 |
3.4 |
2.8 |
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Unemployment in 12 months' time |
3.5 |
11.4 |
-16.0 |
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Price trend over the next 12 months, % |
1.6 |
1.4 |
2.8 |
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Financial situation of households at present |
25.3 |
25.4 |
25.1 |
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Favourable time to make major purchases at present |
-2.0 |
-2.0 |
13.9 |
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Favourable time to save at present |
14.9 |
16.5 |
12.1 |
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Favourable time to raise a loan at present |
24.1 |
21.9 |
8.3 |
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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 February 28 per cent of consumers expected their own economy to improve in the next 12 months and 63 per cent estimated it would remain unchanged. Only 8 per cent of consumers feared their own economy would worsen. Thirty-one per cent believed Finland's economic situation to improve this year while 21 per cent thought the country's economy would deteriorate further.
In February 33 per cent of consumers estimated that unemployment will increase in the next 12 months. The corresponding proportion was 41 per cent in January. Just 9 per cent of employed persons thought they would themselves become unemployed in the next 12 months. Consumers reckoned that the rate of inflation had accelerated to 3.1 per cent in February. Consumers estimated that inflation would be 1.6 per cent in February 2003.
In February 68 per cent of consumers thought the time was favourable for raising a loan and 17 per cent of households planned to take out a loan in the next 12 months. One year ago these proportions were 55 and 13 per cent. In February 63 per cent of consumers considered saving worthwhile and 74 per cent believed they would be able to lay aside money in the next 12 months.
In February 33 per cent of consumers considered the time was favourable for buying consumer durables, but slightly more, i.e. 35 per cent, thought it was unfavourable. These proportions were 42 and 30 per cent in December. Consumers still had several consumption intentions in February. Ten per cent of households intended to buy a car in the next six months and 6 per cent were thinking of buying a dwelling over the next 12 months.
Source: Consumer Survey 2002, February. Statistics Finland