31 March 2003
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Ari Tyrkkö
Consumers have confidence in their own but not in Finland's economy
No significant change took place in Finnish consumers' views on the economy between February and March. The consumer confidence indicator stood at 10.1 in March. Over the past few months, consumers' confidence in the economy has been only slightly weaker than the average since 1995. In March, consumers' views on Finland's economy and on the development of unemployment were pessimistic. In contrast, they still believed strongly in their own economy. Consumers continued to think that 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 1,627 persons resident in Finland were interviewed between 3 and 19 March.
Consumer views on the economic and financial conditions in Finland in March 2003
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| March 2003 balance | February 2003 balance | March 2002 balance | Average 10/95-3/03 | |||||
| Consumer confidence indicator | 10.1 | 10,6 | 13.3 | 14.0 | ||||
| Own economic situation in 12 months' time | 10.9 | 10.5 | 11.5 | 8.4 | ||||
| Household's saving possibilities in the next 12 months | 42.5 | 43.1 | 40.1 | 27.6 | ||||
| General economic situation in Finland in 12 months' time | -4.6 | -3.0 | 7.8 | 8.3 | ||||
| Unemployment in 12 months' time | 8.3 | 8.1 | 6.0 | -11.8 | ||||
| Price trend over the next 12 months, % | 2.1 | 2.0 | 1.6 | 1.9 | ||||
| Financial situation of household at present | 28.2 | 29.0 | 25.8 | 22.7 | ||||
| Favourable time to make major purchases at present | 28.2 | 28.2 | 0.3 | 18.0 | ||||
| Favourable time to save at present | 12.1 | 14.0 | 12.2 | 2.8 | ||||
| Favourable time to raise a loan at present | 32.7 | 33.0 | 22.6 | 20.0 | ||||
| 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. |
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In March, 21 per cent of consumers believed that Finland's economic situation would improve in the next 12 months, while more, or 29 per cent, of them thought the country's economy would deteriorate. In March 2002, the corresponding proportions were 32 and 17 per cent. In all, 28 per cent of consumers believed in March that their own economy would improve and only 9 per cent feared it would worsen over the year.
Altogether 38 per cent of consumers thought in March that unemployment would increase in the next 12 months and only 23 per cent believed unemployment would decrease. About one employed person in ten continued to reckon that they were personally either fairly or very likely to become unemployed within the next 12 months. Consumers predicted that the rate of inflation in March 2004 would be 2.1 per cent.
In March, 73 per cent of consumers thought the time was favourable for raising a loan and 17 per cent of households were planning to do so in the next 12 months. In February, only 13 per cent of households were planning to take out a loan. Altogether 59 per cent of consumers considered saving worthwhile in March and 77 per cent of households believed they would be able to lay aside some money in the next 12 months.
Fifty per cent of consumers considered March a favourable time for buying consumer durables. Twelve months before the corresponding proportion was 33 per cent. Households still had plenty of diverse consumption intentions. Altogether 19 per cent of households were either fairly or very certain to buy a car and 8 per cent planned to buy a dwelling in the next 12 months. Nine per cent of households intended to purchase a digital TV set-top box in the next six months.
Consumer confidence indicator 10/1995-3/2003
Consumers' expectations concerning their own and
Finland's economy
in 12 months' time 10/1995-3/2003
Consumer confidence indicator in EU Member States,
February 2003
Deviation of indicator from country average 10/1995-2/2003*
*Calculated on the basis of seasonally adjusted series.
Source: European Commission, DG ECFIN, Business and Consumer Survey
Results, February 2003
http://europa.eu.int/comm/economy_finance/indicators/businessandconsumersurveys_en.htm
Source: Consumer Survey 2003, March. Statistics Finland