9 December 1999
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumer Survey: Consumers tempted to buy consumer durables
In November, Finnish consumers' intentions to purchase various consumer durables were at their strongest in this decade. Every third household was thinking of buying entertainment electronics, such as a computer or mobile phone in the next six months. Every fourth household was planning to purchase household appliances. The data are based on Statistics Finland's Consumer Survey, for which 1,580 persons resident in Finland were interviewed between 22 and 29 November.
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Consumer views on economic and financial conditions in Finland in November 1999 |
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November 1998 balance |
October 1999 balance |
November 1999 balance |
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Consumer confidence indicator |
10.3 |
15.4 |
13.6 |
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Economic situation of households in 12 months' time |
8.4 |
9.8 |
8.9 |
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General economic situation in 12 months' time |
2.2 |
13.1 |
13.0 |
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Unemployment in 12 months' time |
-12.7 |
-24.2 |
-24.1 |
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Price trend over the next 12 months, % |
1.5 |
1.9 |
2.3 |
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Financial situation of households at present |
20.1 |
20.7 |
21.7 |
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Favourable time to make major purchases at present |
20.4 |
25.0 |
19.5 |
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Favourable time to save at present |
5.0 |
3.1 |
-1.7 |
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Favourable time to raise a loan at present |
28.3 |
34.2 |
26.9 |
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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 November, 8 per cent of households were considering buying a car. Five per cent of households were thinking of buying a dwelling in the next 12 months. Despite future intentions to make major purchases, a smaller proportion of consumers than in the last few months, or 43 per cent, thought at the time of the interview that it was a favourable time to buy consumer durables.
A smaller proportion of consumers than before, i.e. 68 per cent, viewed the time favourable for raising a loan and 12 per cent of households planned to do so in the next 12 months. Forty-eight per cent of consumers considered saving was worthwhile. Of various modes of saving, insurance and fund saving have clearly gained in popularity over the last few months.
The consumer confidence indicator stood at 13.6 in November. Compared to October, it fell primarily because of consumers' weakened views about the time being favourable for making major purchases. In November more than one third of consumers expected Finland's economic situation to improve over the next 12 months. A quarter of consumers thought their own economy would improve.
Well over one half of consumers believed unemployment would continue to decline. In addition, consumers estimated that inflation would accelerate to 2.3 per cent in November 2000.
By international comparison, Finnish consumers' views on the economy are optimistic. In November, 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 was still negative in November, at -1.
Source: Consumer Survey 1999, November. Statistics Finland