5 November, 1998
Inquiries: Mr Pertti Kangassalo + 358 9 1734 3598,
e-mail: pertti.kangassalo@stat.fi
Statistical Director in charge: Mr Markku
Suur-Kujala
Consumer confidence in own economy continues strong
In October, 23 per cent of consumers believed that their own economy would improve over the next 12 months while only 9 per cent expected it to deteriorate. The financial situation of households was slightly better in October than a year ago. A total of 65 per cent of consumers were confident that they could save money in the next 12 months and 16 per cent intended to raise a loan. Intentions to purchase diverse consumer durables continued strong. The data are based on Statistics Finland's Consumer Survey, for which 1 590 persons resident in Finland were interviewed between 19 and 26 October.
Consumer views on economic and financial conditions in Finland
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| October 1997
balance |
September 1998
balance |
October 1998
balance |
|
| Consumer confidence indicator | 15.8 | 13.0 | 10.8 |
| Economic situation of households in 12 months' time | 9.2 | 7.8 | 7.3 |
| General economic situation in 12 months' time | 18.6 | 4.9 | 2.4 |
| Unemployment in 12 months' time | -24.3 | -19.4 | -15.1 |
| Price trend over the next 12 months, % | 1.8 | 1.6 | 1.6 |
| Financial situation of households at present | 21.2 | 23.7 | 23.1 |
| Favourable time to make major purchases at present | 22.6 | 25.1 | 24.0 |
| Favourable time to save at present | -6.3 | 5.9 | 4.3 |
| Favourable time to raise a loan at present | 19.7 | 32.5 | 30.6 |
The balance figures are obtained by deducting the proportion of negative answers from the proportion of positive ones. The negative balance figure for unemployment means that unemployment is estimated to go down. The consumer confidence indicator is the average of the balance figures for the following questions: Finland's past and future economic development, past and future economic development of the respondent's own household, and whether it was a favourable time to make major purchases at present. The balance figures and the confidence indicator can range between -100 and 100.
In October, 5 per cent of households were planning to buy a dwelling in the next 12 months and 10 per cent were going to purchase a car in the next six months. Intentions to purchase entertainment electronics increased slightly in the year to October. More people than a year ago intended to take a holiday abroad in the next six months. Consumers predicted that the rate of inflation in October 1999 would be 1.6 per cent.
Consumers' confidence in rapid economic growth continued to weaken. In October, 21 per cent of them estimated that the country's economic situation would worsen in the next 12 months while 26 per cent expected it to improve. As recently as in August, the corresponding percentages still stood at 10 and 39, respectively. In two months, the proportion of those believing that unemployment would decline has gone down from 58 to 43 per cent.
In October, the confidence indicator expressing consumer views stood at 10.8, which is 2.2 points lower than in September and 6.1 points lower than in August.
Source: Consumer Survey 1998, October. Statistics Finland