28 February 2003
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Ari Tyrkkö
Consumers' confidence in the economy almost unchanged in February
The consumer confidence indicator, expressing Finnish consumers' views on the economy, stood at 10.6 in February, while in January it was 11.9. One year ago, consumers' confidence in the economy was slightly stronger than this. In February, consumers' views on Finland's economy and the development of unemployment were pessimistic. In contrast, they still had strong faith in their own economy. In February, consumers thought the time was very favourable for raising a loan and buying consumer durables. The data are based on Statistics Finland's Consumer Survey, for which 1,583 persons resident in Finland were interviewed between 3 and 21 February.
Consumer views on the economic and financial conditions in Finland in February 2003
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| February 2003 balance | January 2003 balance | February 2002 balance | Average 10/95-2/03 | |
| Consumer confidence indicator | 10.6 | 11.9 | 13.4 | 14.1 |
| Own economic situation in 12 months' time | 10.5 | 10.9 | 11.5 | 8.4 |
| Household's saving possibilities in the next 12 months | 43.1 | 46.8 | 40.8 | 27.4 |
| General economic situation in Finland in 12 months' time | -3.0 | -0.2 | 4.9 | 8.5 |
| Unemployment in 12 months' time | 8.1 | 9.9 | 3.5 | -12.0 |
| Price trend over the next 12 months. % | 2.0 | 1.9 | 1.6 | 1.9 |
| Financial situation of household at present | 29.0 | 30.3 | 25.3 | 22.6 |
| Favourable time to make major purchases at present | 28.2 | 37.0 | -2.0 | 17.9 |
| Favourable time to save at present | 14.0 | 14.6 | 14.9 | 2.7 |
| Favourable time to raise a loan at present | 33.0 | 30.6 | 24.1 | 19.9 |
| 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 February, 23 per cent of consumers believed that Finland's economic situation would improve in the course of next 12 months, while more, or 28 per cent, of them thought the country's economy would deteriorate. Twelve months ago the corresponding proportions were 31 and 21 per cent. In all, 26 per cent of consumers believed in February that their own economy would improve and only 8 per cent feared their own economic situation would worsen over the year.
In all, 38 per cent of consumers thought in February that unemployment would increase in the next 12 months and only 24 per cent believed unemployment would decrease. About one employed person in ten reckoned that they were personally either fairly or very likely to become unemployed within the next 12 months. Consumers predicted that the rate of inflation would be exactly 2 per cent in February 2004.
In February, 73 per cent of consumers thought the time was favourable for raising a loan and 13 per cent of households were planning to do so in the next 12 months. Altogether 61 per cent of consumers considered saving worthwhile in February. As many as 77 per cent of households believed they would be able to lay aside some money in the next 12 months.
A considerable number, or 50 per cent, of consumers considered February a favourable time for buying consumer durables. The corresponding proportion was 55 per cent in January and 33 per cent in February last year. However, consumption plans, such as those for purchasing technical home appliances, petered out somewhat from January. In all, 17 per cent of households were either fairly or very certain to buy a car and 7 per cent a dwelling in the next 12 months. The respective proportions in January were 21 and 9 per cent.
Consumer confidence indicator 10/1995-2/2003
Consumers' expectations concerning their own and
Finland's economy
in 12 months' time 10/1995-2/2003
Consumer confidence indicator in EU Member States,
January 2003
Deviation of indicator from country average 10/1995-1/2003*
*Calculated on the basis of seasonally adjusted
series.
Source: European Commission, DG ECFIN, Business and Consumer Survey
Results, January 2003
http://europa.eu.int/comm/economy_finance/indicators/businessandconsumersurveys_en.htm
Source: Consumer Survey 2003, February. Statistics Finland