Consumer confidence dwindled to the lowest level ever in June

Consumer confidence in areas of residence and population groups

In June, consumer confidence was, as usual, clearly strongest in Greater Helsinki (CCI -4.3). Confidence was weakest in Eastern Finland (-19.1). Of population groups, students were most optimistic (-2.3). Pensioners clearly had the gloomiest expectations concerning economic development in June (-25.6). More detailed information is available in the figures and database tables.

Consumers' own and Finland's economy

Views on the economy weakened in June compared with May and especially compared with June last year. Expectations concerning consumers' own and Finland's economy in 12 months were very pessimistic, views concerning own economy were gloomiest in the entire measuring history 1995 to 2022. Consumers' assessments about their own economy at present were also very weak in June.

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As many as 74 per cent of consumers thought in June that Finland’s economy was now worse than a year ago, and only seven per cent saw it better. As many as 27 per cent of consumers thought that their own economy is at the moment worse than one year ago. Only 22 per cent of consumers regarded their own economy stronger in June than one year ago.

In June, 13 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months. More than one half, 58 per cent of consumers thought that the country’s economy would deteriorate. In all, 25 per cent of consumers believed in June that their own economy would improve and already slightly more, 27 per cent, feared it would worsen over the year.

Unemployment and its threat

Consumers' expectations concerning the development of the general unemployment situation in Finland remained in June unchanged on a long-term average level. Of consumers, 23 per cent expected that unemployment would decrease over the next year, while 35 per cent thought that unemployment would increase.

At the same time, estimates of the personal threat of unemployment or temporary lay-off experienced by employed persons, that is, wage and salary earners and self-employed persons, remained more or less unchanged and fairly bright in June. Of employed persons, 8 per cent believed that the threat had lessened over the past few months, whereas 12 per cent thought the risk had grown. On the other hand, one half or 51 per cent of employed persons felt that they were not threatened by unemployment or temporary lay-off at all.

Inflation

Consumers' estimates of their present situation and expectations concerning inflation were ever higher in June. Expectations concerning inflation in 12 months were highest ever in the measuring history.

In June, consumers estimated that consumer prices have risen by 6.6 per cent from the year before and would go up by 6.3 per cent over the next year. Of consumers, 79 per cent thought prices had risen much or fairly much in a year, and equally many or 79 per cent expected prices to rise at least at the same rate over the coming months as well.

Financial situation, saving and raising a loan

In June, the time was considered very poor for raising a loan and unfavourable for saving as well. Only 23 per cent of consumers regarded the time good for taking out a loan and only 43 per cent thought the time was favourable for saving. Interest in raising a loan was as high as the long-term average among consumers. In June, 16 per cent of consumers were planning to raise a loan within one year.

Consumers considered their own financial situation to be still good in June and expected their saving possibilities to be still fairly high in the coming months. In June, 61 per cent of consumers had been able to lay aside some money and 75 per cent believed they would be able to do so during the next 12 months.

Spending and intentions to make large purchases

In June, the time was considered worst ever for buying durable goods. Only 13 per cent of consumers considered the time favourable for buying.

In June, consumers had very few intentions to spend money on durable goods during the next 12 months. Intentions to buy diminished from May and especially from twelve months back. In June, 11 per cent of consumers planned on increasing and 43 per cent on reducing their spending on durable goods over the next 12 months.

Buying a car during the next 12 months was considered in June equally much as the long-term average. In addition, consumers still had plenty of intentions to buy a dwelling or build a house during the next 12 months. Plans for renovating one's dwelling were also relatively common in in June.

In June, 14 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Similarly, 14 per cent of consumers considered buying a dwelling. Of consumers, 19 per cent were planning to spend money on renovating their home 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, 990 responses were gained. Of responses, 74 % came from the web questionnaire (of the sample 34 %). The non-response rate of the survey was 54.8 %. 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.