Consumer confidence stopped crumbling in May

Consumer confidence in areas of residence and population groups

In May, consumer confidence was, as usual, clearly strongest in Greater Helsinki (CCI -4.9). Confidence was weakest in Northern Finland (-18.3). Among population groups, upper-level salaried employees were most optimistic (-6.2). Pensioners clearly had the gloomiest expectations concerning economic development in May (-20.9). More detailed information is available in the figures and database tables.

Consumers' own and Finland's economy

In May, expectations concerning consumers' own and Finland's economy in 12 months were very pessimistic. Consumers' assessments about their own economy at present were also subdued in May.

Compared with April, the assessment of the present and expectations concerning one's own economy weakened in May. By contrast, expectations concerning Finland's economy recovered slightly. Compared to last year's May, estimates about the economy were now considerably gloomier.

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As many as 72 per cent of consumers thought in May that Finland’s economic situation was now worse than a year ago and only seven per cent of consumers felt that it was better. Twenty-four per cent of consumers thought that their own economic situation is at the moment worse than one year ago. Equally many, or 24 per cent of consumers regarded their own economy stronger in May than one year ago.

In May, 11 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 55 per cent of them thought that the country’s economy would deteriorate. In all, 24 per cent of consumers believed in May that their own economy would improve and already nearly as many, or 23 per cent, of them feared it would worsen over the year.

Unemployment

Consumers' expectations concerning the development of the general unemployment situation in Finland improved slightly in May and were on a long-term average level. Estimates of the personal threat of unemployment or temporary lay-off experienced by employed, that is, wage and salary earners and self-employed persons, remained more or less unchanged and fairly bright in May.

In May, 23 per cent of consumers expected that general unemployment in Finland would decrease over the next year. In turn, 36 per cent of consumers thought that unemployment would increase.

In May, six per cent of employed persons believed that their personal threat of unemployment or temporary lay-off had lessened over the past few months, whereas 11 per cent thought the risk had grown. On the other hand, good one half, or 54 per cent of employed persons felt that they were not threatened by unemployment or temporary lay-off at all.

Inflation

In May, consumers' estimates of the present and expectations concerning inflation rose ever more above their long-term averages. Expectations concerning inflation in 12 months were highest ever in the measuring history 1995 to 2022.

Consumers estimated in May that consumer prices have risen by 6.1 per cent from the year before and would go up by 5.9 per cent over the next year. Of consumers, 74 per cent thought consumer prices had risen much or fairly much over the year, and 77 per cent of them expected prices to rise at least at the same rate over the coming months as well.

Financial situation, saving and raising a loan

As earlier, consumers estimated their own financial situation to be excellent in May. The time was considered the least favourable ever for buying durable goods, very poor for raising a loan and unfavourable for saving as well. Consumers expected their saving possibilities to be still fairly high in the coming months. Consumers still continued to be fairly interested in raising a loan in May.

In May, only 47 per cent of consumers thought the time was favourable for saving. Of consumers, 63 per cent had been able to lay aside some money and 74 per cent believed they would be able to do so during the next 12 months.

In May, only 28 per cent of consumers regarded the time good for taking out a loan. However, 18 per cent of consumers were planning to take out a loan within one year.

Spending and intentions to make large purchases

In May, consumers had very few intentions to spend money on durable goods during the next 12 months. Intentions to buy diminished clearly from twelve months back.

In May, only 14 per cent of consumers considered the time favourable for buying durable goods. Twelve per cent of consumers planned on increasing and 41 per cent on reducing their spending on durable goods over the next 12 months.

In May, fairly many were thinking of buying a car during the next 12 months. In addition, consumers had plenty of intentions to buy or build a dwelling during the next 12 months. Plans for renovating the dwelling were also relatively common in May.

In May, 15 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Similarly, 15 per cent of consumers considered buying a dwelling or building a house. In addition, 20 per cent of consumers were planning in May to spend money on renovating their dwelling during the next 12 months.

EU results

The (seasonally adjusted) survey results concerning economic expectations for all EU countries are released monthly on the European Commission website.

Concepts

The balance figures (balances) are obtained by deducting the weighted proportion of negative answers from that of positive answers. The consumer confidence indicator (CCI/A1) is the average of the balances for the CCI components. The components of the CCI are: consumer's own economy now (B1), consumer's own economy in 12 months (B2), Finland's economy in 12 months (B4) and consumer's spending money on major purchases in the next 12 months compared to the past 12 months (E1). The balances and the CCI can range between -100 and +100 – the higher balance or CCI, the brighter the view on the economy.

Data set for the statistics

In April, in all, 1,045 responses were gained. Of responses, 76 % came from the web questionnaire (of the sample 36 %). The non-response rate of the survey was 52.1 %. This includes those who refused from the survey or were otherwise prevented from participating, as well as those who could not be contacted. Possible over-coverage (dead, inmates of institutions, moved abroad, etc.) is also included in non-response here.