4 November 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 stronger
Finnish consumers continued to believe in the positive development of the economy. The consumer confidence indicator stood at 15.4 in October, that is, higher than in September and one year ago. Confidence both in their own and in Finland's economy has become stronger. The data are based on Statistics Finland's Consumer Survey, for which 1,660 persons resident in Finland were interviewed between 18 and 25 October.
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Consumer views on economic and financial conditions in Finland in October 1999 |
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October 1998 balance |
September 1999 balance |
October 1999 balance |
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Consumer confidence indicator |
10.5 |
14.8 |
15.4 |
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Economic situation of households in 12 months' time |
6.9 |
8.1 |
9.8 |
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General economic situation in 12 months' time |
1.8 |
12.0 |
13.1 |
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Unemployment in 12 months' time |
-15.0 |
-22.9 |
-24.2 |
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Price trend over the next 12 months, % |
1.6 |
2.0 |
1.9 |
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Financial situation of households at present |
19.9 |
21.1 |
20.7 |
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Favourable time to make major purchases at present |
24.2 |
28.5 |
25.0 |
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Favourable time to save at present |
3.7 |
0.8 |
3.1 |
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Favourable time to raise a loan at present |
30.5 |
34.9 |
34.2 |
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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. |
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In October, more than one third of consumers believed that Finland's economic situation would improve over the next 12 months. A quarter of consumers thought their own economy would improve. Only about every tenth consumer estimated that the country's economy would deteriorate. An even smaller proportion of consumers thought their own economy would worsen. Well over one half of consumers believed unemployment would continue to decline.
In October, 46 per cent of consumers thought the time was favourable for buying various consumer durables. Thirty-one per cent of households were planning to purchase entertainment electronics in the next six months. Eight per cent of households were considering buying a car. Six per cent of households were thinking of buying a dwelling in the next 12 months. Thirty-seven per cent of households were going to spend a winter holiday abroad. Consumers estimated that inflation would be 1.9 per cent in October 2000.
The financial situation of households was still stable in October. Seventy-four per cent of consumers viewed the time favourable for raising a loan and 15 per cent of households planned to do so in the next 12 months. Fifty-one per cent of consumers considered saving was worthwhile.
By international comparison, Finnish consumers' views on the economy are optimistic. In September, 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 23 in the Netherlands, 21 in Ireland and 14 in Finland. The average confidence indicator of the EU Member States was still negative in September, at -3.
Source: Consumer Survey 1999, October. Statistics Finland