8 July, 1999
Inquiries: Mr Pertti Kangassalo +358 9 1734 3598,
pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumer Survey: Consumer confidence in the economy strong
Finnish consumers' confidence in favourable economic development continued even stronger in June. The consumer confidence indicator stood at 16.7 in June. Since the end of last decade, confidence in the economy has been as high only in April 1997 and July 1998. The data are based on Statistics Finland's Consumer Survey, for which 1,580 persons resident in Finland were interviewed between 21 and 28 June.
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Consumer views on economic and financial conditions in Finland |
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June 1998 balance |
May 1999 balance |
June 1999 balance |
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|
Consumer confidence indicator |
15.6 |
13.9 |
16.7 |
|
Economic situation of households in 12 months' time |
9.4 |
9.9 |
10.5 |
|
General economic situation in 12 months' time |
15.1 |
12.0 |
13.9 |
|
Unemployment in 12 months' time |
-23.2 |
-20.5 |
-21.2 |
|
Price trend over the next 12 months, % |
1.8 |
1.6 |
1.6 |
|
Financial situation of households at present |
22.1 |
20.5 |
24.6 |
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Favourable time to make major purchases at present |
23.4 |
25.0 |
29.4 |
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Favourable time to save at present |
4.8 |
-4.2 |
-3.4 |
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Favourable time to raise a loan at present |
27.3 |
36.9 |
42.0 |
The balance figures are obtained by deducting the weighted proportion of negative answers from that of positive answers. 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 June, 36 per cent of consumers believed that Finland's economic situation would improve during the next 12 months and 49 per cent expected it to remain unchanged. Only nine per cent thought the country's economy would deteriorate. Twenty-six per cent of consumers assumed their own economy would improve, 64 per cent thought it would remain unchanged and only seven per cent expected it to worsen.
The financial situation of households has amended. Fifty-two per cent of households could save money in June and 67 per cent thought they would be able to save money during the next 12 months. Forty-seven per cent of consumers viewed the time favourable for saving. In contrast, as many as 78 per cent of consumers thought in June that it was advantageous to raise a loan and 15 per cent of households intended to do so.
In June, 47 per cent of consumers estimated it was a favourable time to buy various consumer durables. Several consumers were planning to purchase entertainment electronics and leisure and sports equipment. Eight per cent of households considered buying a car in the next six months. Six per cent of households were thinking of buying a dwelling in the next 12 months. Consumers predicted that the rate of inflation in June 2000 would be 1.6 per cent.
By international comparison, Finnish consumers' views on the economy are optimistic. In June, the only EU Member State where consumers were more confident about economic development than in Finland was Ireland (confidence indicator 20). The average confidence indicator of the EU Member States stood at -3 in June.
Source: Consumer Survey 1999, June. Statistics Finland