3 December, 1998
Inquiries: Mr Pertti Kangassalo + 358 9 1734 3598,
e-mail: pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumer confidence in economy unchanged
Consumers' confidence in rapid economic growth did not weaken any further in November. Seventy-six per cent of consumers expected that the country's economic situation would either remain unchanged or improve further in the next 12 months, while 19 per cent expected it to worsen. Against this, the proportion of those believing that unemployment would decline continued to recede and was 41 per cent in November as against October's 44 per cent. The data are based on Statistics Finland's Consumer Survey, for which 1,530 persons resident in Finland were interviewed between 16 and 23 November.
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| Consumer views on economic and financial conditions in Finland | |||
| November 1997
balance |
October 1998
balance |
November 1998
balance |
|
| Consumer confidence indicator | 14.8 | 10.8 | 10.7 |
| Economic situation of households in 12 months' time | 7.1 | 7.3 | 8.9 |
| General economic situation in 12 months' time | 16.9 | 2.4 | 2.9 |
| Unemployment in 12 months' time | -24.3 | -15.1 | -12.8 |
| Price trend over the next 12 months, % | 1.9 | 1.6 | 1.5 |
| Financial situation of households at present | 20.1 | 23.1 | 22.4 |
| Favourable time to make major purchases at present | 21.4 | 24.0 | 20.4 |
| Favourable time to save at present | -5.0 | 4.3 | 5.5 |
| Favourable time to raise a loan at present | 20.9 | 30.6 | 28.5 |
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.
Consumer confidence in own economy remained strong in November. A total of 63 per cent of consumers were confident that they could save money in the next 12 months and 14 per cent intended to raise a loan. Four per cent of households were planning to buy a dwelling in the next 12 months and 9 per cent were going to buy a car in the next six months. Intentions to purchase home electronics, such as a mobile telephone or home computer, continued to increase. Slightly fewer persons than in October intended to take a holiday abroad. Consumers predicted that the rate of inflation in November 1999 would be 1.5 per cent.
In November, the confidence indicator expressing consumers' views on the economy stood at 10.7, which is roughly the same as in October. By international comparison, Finnish consumers' views on the economy continued to be optimistic. In September, when estimates about the country's economic situation had already worsened, the only EU Member States where consumers were more confident about economic development than in Finland were Ireland and the Netherlands. The average confidence indicator of the EU Member States remained negative, at -5, in September.
Source: Consumer Survey 1998, November. Statistics Finland