Consumers feel gloomy about their own economy in November – intentions to spend money low

Consumer confidence in areas of residence and population groups

In November, consumer confidence was strongest in Greater Helsinki (CCI -10.2). Confidence was weakest (-22.1) elsewhere in Southern Finland and Northern Finland. Among population groups, students were the least pessimistic (-3.6). Pensioners had the gloomiest expectations concerning economic development (-27.3) in November. More detailed information is available in the figures and database tables.

Consumers' own and Finland's economy

In November, consumers' estimates of their own economy at present were the gloomiest ever in the measuring history 1995 to 2022. Expectations concerning their own and Finland's economy in one year's time were also very weak.

However, expectations about the economy improved slightly in November from October. Compared to last year's November, economic outlook was now clearly gloomier.

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As many as 84 per cent of consumers thought in November that Finland’s economy was worse at the moment than a year ago, and only three per cent saw it better. As many as 31 per cent of consumers thought that their own economy is at the moment worse than one year ago. Only 20 per cent of consumers regarded their own economy stronger in November than one year ago.

In November, only 13 per cent of consumers believed that Finland’s economic situation would improve in the coming 12 months. Over one half, 59 per cent of consumers thought that the country’s economy would deteriorate. In all, 25 per cent of consumers believed in November that their own economy would improve and equally many of them feared it would worsen over the year.

Unemployment and its threat

Consumers' expectations concerning the development of the general unemployment situation in Finland improved slightly in November but remained fairly pessimistic. Only 16 per cent of consumers expected that unemployment would decrease over the year, 41 per cent believed it would increase.

In November, 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. Eight per cent of employed persons believed that their personal threat of unemployment had lessened over the past few months, while 15 per cent thought the risk had grown. One half, or 50 per cent of employed persons thought in November that they were not threatened by unemployment or temporary lay-off at all.

Inflation

In November, consumers' estimates of inflation at the time of the survey continued to rise and were the highest in the measuring history. By contrast, expectations concerning inflation in one year's time fell slightly from October.

Consumers estimated in November that consumer prices have risen by 8.5 per cent from last year's November and would go up by 6.5 per cent over the next year. Altogether 88 per cent of consumers thought consumer prices have risen much or fairly much over the year, and 58 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

As in the past few months, the time was considered very poor for taking out a loan and also for saving in November. Just 11 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, intentions to take out a loan also fell to a very low level among consumers. In November, only 14 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 November 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 73 per cent believed they would be able to do so during the next 12 months.

Spending and intentions to make large purchases

In November, the time was considered again the worst ever for buying durable goods. Only seven 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 also record low in November. Their intentions to make purchases fell from especially from one year ago. Just eight per cent of consumers planned on increasing and one half, or 50 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 November than the long-term average. There were also fewer intentions to buy a dwelling or build a house than usual. By contrast, plans to renovate one's dwelling were average.

In November, only 11 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. 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 November 2022, a total of 1,002 persons participated in the Consumer Confidence Survey. The response rate was 45.9 per cent. The survey is carried out with a web questionnaire and by telephone interviews. In November, 80 per cent of the responses came from the web questionnaire (of the sample the share was 37%). 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.