31 January 2003
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Ari Tyrkkö
Consumers consider the time favourable for buying consumer durables
Consumers' confidence in the economy strengthened slightly in January. The consumer confidence indicator was 11.9 in January, against 9.4 in December. In January consumers assessed their households' saving possibilities as excellent. In contrast, they were still pessimistic about Finland's economy and the development of unemployment. In January consumers thought the time was exceptionally favourable for purchasing consumer durables. The data are based on Statistics Finland's Consumer Survey, for which 1,654 persons resident in Finland were interviewed between 2 and 21 January 2003.
Consumer views on the economic and financial conditions in Finland in January 2003
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| January 2003 balance | December 2002 balance | January 2002 balance | Average 10/95-1/03 | |||||
| Consumer confidence indicator | 11.9 | 9.4 | 10.5 | 14.1 | ||||
| Own economic situation in 12 months' time | 10.9 | 10.9 | 10.6 | 8.4 | ||||
| Household's saving possibilities in the next 12 months | 46.8 | 38.6 | 39.3 | 27.2 | ||||
| General economic situation in Finland in 12 months' time | -0.2 | 0.1 | 3.4 | 8.6 | ||||
| Unemployment in 12 months' time | 9.9 | 11.9 | 11.4 | -12.2 | ||||
| Price trend over the next 12 months. % | 1.9 | 1.8 | 1.4 | 1.9 | ||||
| Financial situation of household at present | 30.3 | 27.2 | 25.4 | 22.6 | ||||
| Favourable time to make major purchases at present | 37.0 | 9.9 | -2.0 | 17.8 | ||||
| Favourable time to save at present | 14.6 | 13.2 | 16.5 | 2.6 | ||||
| Favourable time to raise a loan at present | 30.6 | 29.0 | 21.9 | 19.7 | ||||
| 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 number of unemployed (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 January, 24 per cent of consumers believed that Finland's economic situation would improve in the course of this year, while as many thought the country's economy would deteriorate. The corresponding proportions were 30 and 23 per cent one year ago. In all, 28 per cent of consumers believed in January that their own economy would improve and just 10 per cent feared their own economic situation would worsen this year.
In all, 41 per cent of consumers thought in January that unemployment would increase in the next 12 months and only 23 per cent believed unemployment would decrease. However, just 7 per cent of employed persons reckoned that they were personally either fairly or very likely to become unemployed in the next 12 months. Consumers predicted that the rate of inflation would be 1.9 per cent in January 2004.
In January, 72 per cent of consumers thought the time was favourable for raising a loan and 14 per cent of households were planning to do so in the next 12 months. In January, 62 per cent of consumers considered saving worthwhile. As many as 78 per cent of households believed they would be able to lay aside money in the next 12 months.
In January, exceptionally many, i.e. 55 per cent of consumers considered the time favourable for buying consumer durables. The corresponding proportion was 39 per cent in December and only 34 per cent in January last year. Households had plenty of plans for spending on home improvement and furnishing and travel. Of households 21 per cent were either fairly or very certain to buy a car and 9 per cent a dwelling in the next 12 months (12 months was used for the first time as the planning period for buying a car similarly as for a dwelling).
Consumer confidence indicator 10/1995-1/2003
Consumers' expectations concerning their own and
Finland's economy
in 12 months' time 10/1995-1/2003
Consumer confidence indicator in EU Member States,
December 2002
Deviation of indicator from country average 10/1995-12/2002*
http://europa.eu.int/comm/economy_finance/indicators/businessandconsumersurveys_en.htm
Source: Consumer Survey 2003, January. Statistics Finland