2 September 1999
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumer confidence in the economy still strong
Finnish consumers continue to believe in the positive development of the economy. The consumer confidence indicator stood at 14.0 in August. After June, consumers' estimates of their own and the country's economy and about the time being favourable for buying consumer durables have deteriorated slightly. The data are based on Statistics Finland's Consumer Survey, for which 1,630 persons resident in Finland were interviewed between 16 and 23 August.
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Consumer views on economic and financial conditions in Finland |
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August 1998 balance |
July 1999 balance |
August 1999 balance |
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Consumer confidence indicator |
16.3 |
15.9 |
14.0 |
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Economic situation of households in 12 months' time |
7.2 |
9.2 |
8.0 |
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General economic situation in 12 months' time |
14.4 |
12.1 |
10.6 |
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Unemployment in 12 months' time |
-25.8 |
-21.4 |
-20.4 |
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Price trend over the next 12 months, % |
1.8 |
1.8 |
2.1 |
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Financial situation of households at present |
23.4 |
25.0 |
24.2 |
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Favourable time to make major purchases at present |
23.4 |
28.2 |
25.0 |
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Favourable time to save at present |
7.3 |
-2.4 |
2.0 |
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Favourable time to raise a loan at present |
32.9 |
39.2 |
38.6 |
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 August every third consumer believed that Finland's economic situation would improve further over the next 12 months. Every fourth consumer thought his or her own economy would improve. About every tenth consumer estimated his or her own or the country's economy would worsen. More than one half of consumers believed unemployment would decline.
Every second household was able to lay aside some money in August. Income and expenses were equal in two households out of five. Two out of three thought they would be able to save money in the next 12 months.
In August, 75 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. Fifty-one per cent of consumers thought saving was worthwhile.
In August, 6 per cent of households were thinking of buying a dwelling in the next 12 months. Forty-three per cent of households were planning to acquire new furnishings in the next six months. Nine per cent of households considered buying a car and 30 per cent thought of purchasing entertainment electronics. Forty-four per cent of consumers considered it was a favourable time to buy various consumer durables. Consumers predicted that the year-on-year change of consumer prices would be 2.1 per cent in August 2000, which means that the rate of inflation would accelerate slightly.
By international comparison, Finnish consumers' views on the economy are optimistic. In July, the only EU Member States where consumers were more confident about economic development than in Finland were Ireland and the Netherlands. The seasonally adjusted confidence indicator of the EU was 22 in Ireland, 17 in the Netherlands and 14 in Finland. The average confidence indicator of the EU Member States has been -3 since May.
Source: Consumer Survey 1999, August. Statistics Finland