Consumer confidence remained gloomy in October

Consumer confidence in areas of residence and population groups

In October, consumer confidence was strongest in Greater Helsinki (CCI -11.8). Confidence was weakest in Eastern Finland (-22.6). Among population groups, upper-level salaried employees were the least pessimistic (-7.2). Unemployed persons had the gloomiest expectations concerning economic development (-25.1) in October. More detailed information is available in the figures and database tables.

Consumers' own and Finland's economy

Expectations concerning Finland's economy in 12 months' time were the gloomiest ever in the measuring history 1995 to 2022. Expectations concerning one's own economy were also very weak, as was the assessment of its state at the time of the survey.

However, expectations concerning one's own economy improved in October compared to September, while the estimate of the present situation fell. Compared to last year's October, the economic outlook was now clearly gloomier.

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As many as 86 per cent of consumers thought in October that Finland’s economy was now worse than a year ago, and only three per cent saw it better. As many as 30 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 October than one year ago.

In October, only 12 per cent of consumers believed that Finland’s economic situation would improve in the coming 12 months. More than one half, 61 per cent of consumers thought that the country’s economy would deteriorate. In all, 26 per cent of consumers believed in October that their own economy would improve, while slightly more, 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 to a pessimistic level in September. Only 15 per cent of consumers expected that unemployment would decrease over the next year, and nearly one half, 45 per cent believed it would increase.

In October, employed consumers (wage and salary earners and self-employed persons) reckoned that their personal threat of unemployment or lay-off was lower than long-term average. Six per cent of employed persons believed that their personal threat of unemployment had lessened over the past few months, while 14 per cent thought the risk had grown. One half, or 51 per cent of employed persons thought in October that they were not threatened by unemployment or temporary lay-off at all.

Inflation

In October, consumers' estimates of inflation at the time of the survey and in 12 months continued to rise and were highest in the measuring history.

Consumers estimated in October that consumer prices have risen by 8.3 per cent from last year's October and would go up by 6.8 per cent over the next year. Altogether 87 per cent of consumers thought consumer prices have risen much or fairly much over the year, and 61 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

In October, the time was regarded very poor for taking out a loan and also for saving. Just 13 per cent of consumers regarded the time favourable for taking out a loan and only 38 per cent considered saving worthwhile. At the same time, plans to take out a loan also fell slightly below the long-term average level among consumers. In October, 15 per cent of consumers were planning to take out a loan within one year.

Consumers continued to regard their own financial situation as good in October and their saving possibilities were expected to be average in the coming months. Sixty-one per cent of consumers had been able to lay aside some money and 72 per cent believed they would be able to do so during the next 12 months.

Spending and intentions to make large purchases

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

Consumers’ intentions to spend money on durable goods in the next 12 months were record low in October. Intentions to make purchases fell from September and especially from one year ago. Just eight per cent of consumers planned on increasing and one half, or 49 per cent on reducing their spending on durable goods over the next 12 months.

Consumers thought of buying a car in the next 12 months clearly less often in October than the long-term average. Plans to buy or build a dwelling were just under average and the same also applies to plans to renovate one's dwelling.

In October, only 12 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Similarly, twelve per cent of consumers considered buying a dwelling. Seventeen per cent of consumers were planning to spend money on renovating their dwelling during the next 12 months.

Data set for the statistics

In October 2022, a total of 1,011 persons participated in the Consumer Confidence Survey. The response rate was 46.3 per cent. The survey is carried out with a web questionnaire and by telephone interviews. In October, 75 per cent of the responses came from the web questionnaire (of the sample the share was 35%). For the survey, answers are mainly given by means of answer options (qualitative survey).

EU results

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