30 April 2003
Inquiries: Mr Pellervo Marja-aho +358 9 1734
3598, pellervo.marja-aho@stat.fi
Director in charge: Mr Ari Tyrkkö
Consumers consider the time favourable for taking out a loan and buying consumer durables
Consumers' confidence in the economy was in April more or less unchanged from March. One year ago the consumer sentiments were better, however. The consumer confidence indicator was 9.6 in April. Consumers still had strong faith in their own economy, and pessimism concerning Finland's economy declined slightly from March. The time was considered ever more favourable for raising a loan and purchasing consumer durables. The data are based on Statistics Finland's Consumer Survey, for which 1,616 persons resident in Finland were interviewed between 1 and 22 April 2003.
Consumer views on the economic and financial conditions in Finland in April 2003
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| April 2003 balance | March 2003 balance | April 2002 balance | Average 10/95-4/03 | |||||
| Consumer confidence indicator | 9.6 | 10.1 | 15.7 | 14.0 | ||||
| Own economic situation in 12 months' time | 11.0 | 10.9 | 11.6 | 8.5 | ||||
| Household's saving possibilities in the next 12 months | 38.8 | 42.5 | 40.7 | 27.7 | ||||
| General economic situation in Finland in 12 months' time | -2.5 | -4.6 | 7.7 | 8.2 | ||||
| Unemployment in 12 months' time | 8.7 | 8.3 | -2.6 | -11.6 | ||||
| Price trend over the next 12 months. % | 1.6 | 2.1 | 2.0 | 1.9 | ||||
| Financial situation of household at present | 27.8 | 28.2 | 24.8 | 22.7 | ||||
| Favourable time to make major purchases at present | 31.6 | 28.2 | 1.2 | 18.2 | ||||
| Favourable time to save at present | 11.3 | 12.1 | 15.5 | 2.9 | ||||
| Favourable time to raise a loan at present | 34.7 | 32.7 | 22.7 | 20.2 | ||||
| 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 April, 25 per cent of consumers believed that Finland's economic situation would improve in the next 12 months, while slightly more, i.e. 28 per cent, thought the country's economy would deteriorate. The corresponding proportions were 21 and 29 per cent in March and 33 and 17 per cent in last year's April. In all, 28 per cent of consumers believed in April that their own economy would improve and just 9 per cent feared their own economic situation would worsen in the next 12 months.
In all, 39 per cent of consumers thought in April that unemployment would increase in the next 12 months and only 24 per cent believed unemployment would decrease. Around 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 would be 1.6 per cent in April 2004. The figure for March was assessed to be higher, 2.1 per cent.
In April, 74 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. One year ago 67 per cent of consumers thought it was worthwhile to take out a loan. In April, 59 per cent of consumers considered saving worthwhile. As many as 73 per cent of households believed they would be able to lay aside money in the next 12 months.
In April, 52 per cent of consumers considered the time favourable for buying consumer durables. The corresponding proportion was 33 per cent in April last year. Households still had plenty of consumption intentions. Of households 17 per cent were either fairly or very certain to buy a car and 7 per cent a dwelling in the next 12 months. As many as 11 per cent of households were thinking of buying a digital TV set-top box over the next six months.
Consumer confidence indicator 10/1995-4/2003
Consumers' expectations concerning their own and
Finland's economy
in 12 months' time 10/1995-4/2003
Consumer confidence indicator in EU Member States,
March 2003
Deviation of indicator from country average 10/1995-3/2003*
*Calculated on the basis of seasonally adjusted series.
Source: European Commission, DG ECFIN, Business and Consumer Survey
Results, March 2003
http://europa.eu.int/comm/economy_finance/indicators/businessandconsumersurveys_en.htm
Source: Consumer Survey 2003, April. Statistics Finland