5 August, 1999
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumer Survey: Households' financial situation good
The financial situation of Finnish households has improved gradually. In July 53 per cent of households were able to save money. Four per cent of households had to draw on their savings and only two per cent ran into debt. Sixty-five per cent of households believed they could save money during the next 12 months. The data are based on Statistics Finland's Consumer Survey, for which 1,610 persons resident in Finland were interviewed between 19 and 26 July.
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Consumer views on economic and financial conditions in Finland |
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July 1998 balance |
June 1999 balance |
July 1999 balance |
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|
Consumer confidence indicator |
16.7 |
16.7 |
15.9 |
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Economic situation of households in 12 months' time |
8.4 |
10.5 |
9.2 |
|
General economic situation in 12 months' time |
17.8 |
13.9 |
12.1 |
|
Unemployment in 12 months' time |
-25.5 |
-21.2 |
-21.4 |
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Price trend over the next 12 months, % |
1.7 |
1.6 |
1.8 |
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Financial situation of households at present |
24.1 |
24.6 |
25.0 |
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Favourable time to make major purchases at present |
23.8 |
29.4 |
28.2 |
|
Favourable time to save at present |
6.2 |
-3.4 |
-2.4 |
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Favourable time to raise a loan at present |
29.7 |
42.0 |
39.2 |
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 July 76 per cent of consumers viewed the time favourable for raising a loan and 14 per cent of households planned to do so in the next 12 months. Loans were mainly intended for acquiring consumer durables or fixed assets, such as dwellings. Forty-eight per cent of consumers thought saving was worthwhile.
In July 47 per cent of consumers considered it was a favourable time to buy various consumer durables. Eight per cent of households considered buying a car in the next six months. Five per cent of households were thinking of buying a dwelling in the next 12 months. Several consumers were planning to make home repairs and acquire new furnishings. Consumers predicted that consumer prices would rise by 1.8 per cent by July 2000.
In July as many as 79 per cent of households had a mobile phone. Forty-three per cent of households had a personal computer and 23 per cent had their home computer connected to the Internet.
Finnish consumers' confidence in favourable economic development continued strong in July. The consumer confidence indicator stood at 15.9, i.e. almost as high as in June or one year ago. Every third consumer believed that Finland's economic situation would improve further in the next 12 months. Every fourth consumer thought his or her own economy would improve. Fewer than every tenth consumer estimated that his or her own or the country's economy would deteriorate.
Source: Consumer Survey 1999, July. Statistics Finland