31 December 2002
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Ari Tyrkkö
Consumers' confidence in economy unchanged
Consumers continue to have confidence in their own economy, but remain sceptical of the prospects of Finland's economy, especially the development of unemployment. The consumer confidence indicator stood at 9.4 in December, or about as high as in November and slightly higher than a year ago. In December, consumers' views about the financial situation of household were positive and consumers considered the time favourable for raising a loan. The data are based on Statistics Finland's Consumer Survey, for which 1,637 persons resident in Finland were interviewed between 2 and 18 December.
Consumer views on economic and financial conditions in Finland in December 2002
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| December 2002 balance | November 2002 balance | December 2001 balance | Average 10/95-12/02 | |||||
| Consumer confidence indicator | 9.4 | 9.5 | 6.9 | 14.1 | ||||
| Own economic situation in 12 months' time | 10.9 | 9.1 | 8.0 | 8.4 | ||||
| Household's saving possibilities in the next 12 months | 38.6 | 40.7 | 36.5 | 27.0 | ||||
| General economic situation in Finland in 12 months' time | 0.1 | 1.5 | -3.2 | 8.7 | ||||
| Unemployment in 12 months' time | 11.9 | 13.2 | 13.8 | -12.5 | ||||
| Price trend over the next 12 months, % | 1.8 | 1.7 | 2.5 | 1.9 | ||||
| Financial situation of household at present | 27.2 | 27.3 | 24.3 | 22.5 | ||||
| Favourable time to make major purchases at present | 9.9 | 8.3 | 11.2 | 17.6 | ||||
| Favourable time to save at present | 13.2 | 15.6 | 15.6 | 2.5 | ||||
| Favourable time to raise a loan at present | 29.0 | 25.7 | 24.3 | 19.6 | ||||
| The balance figures are obtained by deducting the weighted proportion of negative answers from that of positive answers. The consumer confidence indicator is the average of the balance figures for four questions concerning the next 12 months: own and Finland's economy, household's saving possibilities and unemployment (with changed sign). The balance figures and the confidence indicator can range between -100 and 100. A positive balance figure denotes an optimistic and a negative balance figure a pessimistic view on the economy, except for unemployment where the reverse applies. | ||||||||
In December, 26 per cent of consumers believed that Finland's economic situation would improve in the next 12 months, while 25 per cent thought it would worsen. A year ago, the respective proportions were 24 and 29 per cent. In all, 27 per cent of consumers believed in December that their own economic situation would improve, whereas only 9 per cent feared it would worsen.
Altogether 42 per cent of consumers thought in December that unemployment would rise next year, while only 20 per cent of them believed it would fall. The risk of becoming personally unemployed within the next 12 months continued to be rated as moderate or high by one employed person out of ten. Consumers predicted that the rate of inflation in December 2003 would be 1.8 per cent.
A total of 71 per cent of consumers thought in December that the time was favourable for raising a loan and 15 per cent of households were planning to do so in the next 12 months. Saving was considered worthwhile by 61 per cent of consumers and as many as 74 per cent of households believed they would be able to lay aside money next year.
In December, 39 per cent of consumers thought the time was favourable for buying durable goods. Households had plenty of plans for spending on e.g. travel and entertainment electronics. Ten per cent of them intended to purchase a car in the next six months and 7 per cent thought of buying a dwelling in the next 12 months.
Consumer confidence indicator 10/1995-12/2002
Consumers' expectations concerning their own and Finland's economy in twelve months' time 10/1995-12/2002
Consumer confidence indicator in various EU Member
States, November 2002
Indicator deviance from country mean 10/1995-11/2002*
http://europa.eu.int/comm/economy_finance/indicators/businessandconsumersurveys_en.htm
Source: Consumer Survey 2002, December. Statistics Finland