Consumer confidence low but did not weaken further in August

Consumer confidence in areas of residence and population groups

In August, consumer confidence was strongest in Eastern Finland and in Greater Helsinki (CCI -11.6 and -11.8). Confidence was weakest elsewhere in Southern Finland (-17.9). Of population groups, students were most optimistic (-6.7). In August, pensioners clearly had the most negative expectations concerning economic development (-24.5). More detailed information is available in the figures and database tables.

Consumers' own and Finland's economy

Consumers’ assessments of their own economy at present and expectations concerning it improved in August compared to July. By contrast, expectations about Finland’s economy in 12 months weakened again. Compared with August last year, the views on the economy weakened significantly.

In August, views on both consumers’ own economy and Finland’s economy were very pessimistic. Expectations about Finland’s economy in 12 months were nearly most dismal in the entire measuring history from 1995 to 2022.

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As many as 81 per cent of consumers thought in August that Finland's economic situation is now worse than a year ago, and only six per cent of consumers felt that it was better. Twenty-seven per cent of consumers thought that their own economy is now worse than one year ago. Slightly fewer, or 25 per cent of consumers, regarded their own economy as stronger in July than one year ago.

In August, only 11 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months. More than one half, or 59 per cent of consumers, thought that the country’s economy would deteriorate. In all, 27 per cent of consumers believed in August that their own economy would improve, while 29 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 weakened in August to a fairly pessimistic level. Of consumers, only 17 per cent expected that unemployment would decrease over the next year, while more than before, or 41 per cent, thought that unemployment would increase.

In August, the employed, that is, wage and salary earners and self-employed persons, estimated that the personal threat of unemployment or temporary lay-off had worsened and become as high as the long-term average. Seven per cent of employed persons reckoned that their personal threat of unemployment had lessened over the past few months, while as many as 16 per cent thought the risk had grown. On the other hand, nearly one half, or 45 per cent of employed persons felt in August that they were not threatened by unemployment or temporary lay-off at all.

Inflation

In August, consumers’ estimates concerning inflation at the time of the survey and still in 12 months rose to their highest in measuring history.

In August, consumers estimated that consumer prices have risen by 7.5 per cent from last year’s August and will go up by 6.4 per cent over the next year. In all, 82 per cent of consumers thought prices had risen much or fairly much over the year, and 69 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 August, the time was considered very poor for raising a loan and for saving as well. Only 19 per cent of consumers regarded the time good for raising a loan and only 39 per cent thought the time was favourable for saving. Still, intentions related to raising a loan were as high as the long-term average among consumers. In August, 16 per cent of consumers were planning to raise a loan within one year.

Consumers considered their own financial situation to still be good in August and expected their saving possibilities to be average in the coming months. In August, 59 per cent of consumers 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.

Spending and intentions to make large purchases

In August, the time was considered worst ever for buying durable goods. Only 11 per cent of consumers considered the time favourable for expensive purchases.

In August, consumers had very little intention to spend money on durable goods during the next 12 months. Intentions to buy durable goods have declined drastically from one year ago. In August, 10 per cent of consumers planned on increasing and 42 per cent on reducing their spending on durable goods over the next 12 months.

Buying a car during the next 12 months was in August considered less than in the long-term average. By contrast, plans to buy a dwelling or build a house were on an average level. In addition, plans for renovating one’s dwelling increased to fairly plenty for a change.

In August, only 13 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Likewise, 13 per cent of consumers considered buying a dwelling. Twenty per cent of consumers 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 August, in all, 976 responses were gained. Of responses, 78 per cent came from the web questionnaire (of the sample 35%). The non-response rate of the survey was 55.3 per cent. 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.