Consumers' assessments about their own economy ever gloomier in December 2022

Consumer confidence in areas of residence and population groups

In December, consumer confidence was strongest in Greater Helsinki (CCI -15.3). Confidence was weakest in Northern Finland (-21.6). Of population groups, students were least pessimistic (-9.4). Pensioners had the most negative expectations concerning economic development (-28.3) in December. More detailed information is available in the figures and database tables.

Consumers' own and Finland's economy

In December, consumers’ views on their own economy at present was ever more pessimistic and gloomiest in measuring history 1995 to 2022. The already low expectations concerning consumers’ own economic situation in 12 months also weakened compared to November.

Consumers’ expectations concerning Finland’s economy improved slightly in December, but still remained on a very weak level. Compared to one year ago in December, the views on the economy were now clearly gloomier.

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In December, already 38 per cent of consumers thought that their own economy is worse than one year ago. Only 16 per cent of consumers regarded their own economy stronger now than one year ago. As many as 84 per cent of consumers thought that Finland's economic situation is now worse than a year ago, and only three per cent of consumers felt that it was better.

In December, 15 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months. Good one half, or 53 per cent of consumers, thought that the country’s economy would deteriorate. In all, 24 per cent of consumers believed in December that their own economy would improve and slightly more, or 28 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 December and was on a fairly pessimistic level. Of consumers, only 14 per cent expected that unemployment would decrease over the next year, while nearly one half, or 46 per cent, thought that unemployment would increase.

In December, employed consumers (wage and salary earners and self-employed persons) felt that the personal threat of unemployment or temporary lay-off had become as high as the long-term average. Six per cent of employed persons reckoned that their personal threat of unemployment had lessened over the past few months, while 16 per cent thought the risk had grown. One half, or 51 per cent, of employed persons felt in December that they were not threatened by unemployment or temporary lay-off at all.

Inflation

In December, consumers’ estimates concerning inflation at the time of the survey rose slightly further and were highest in measuring history. By contrast, expectations concerning inflation in 12 months continued to decrease slightly.

In December, consumers estimated that consumer prices have risen by 8.6 per cent from last year’s December and will go up by 6.2 per cent over the next year. In all, 92 per cent of consumers thought prices had risen much or fairly much over the year, but only one half, or 50 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 December, as in the past months, the time was considered very poor for raising a loan and for saving as well. Only 10 per cent of consumers regarded the time good for raising a loan and 34 per cent thought the time was favourable for saving. At the same time, intentions to take out a loan were on a very low level. In December, only 13 per cent of consumers were planning to take out a loan within one year.

In December, consumers considered their own financial situation to be only average. Similarly, consumers expected their saving possibilities to be on their usual level in the coming months. In December, 57 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 December, the time was considered almost the worst ever for buying durable goods. Only nine per cent of consumers considered the time favourable for expensive purchases.

In December, consumers had record low intentions to spend money on durable goods during the next 12 months. Intentions to buy durable goods subsided especially compared to one year ago. In December, only eight per cent of consumers planned on increasing and over one half, or 53 per cent, on reducing their spending on durable goods over the next 12 months.

Buying a car during the next 12 months was in December considered to a clearly lesser extent than the long-term average. Plans to buy a dwelling or build a house were also more marginal than usual. By contrast, plans for renovating one’s dwelling were still on the average level.

In December, only 11 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Likewise, only 11 per cent of consumers considered buying a dwelling. Seventeen per cent of consumers were planning to spend money on renovating their home during the next 12 months.

Data set for the statistics

The Consumer Confidence Survey is carried out with a web questionnaire and by telephone interviews. Answers are mainly given by means of answer options (qualitative survey). In December 2022, a total of 1,008 persons participated in the Survey and the response rate was 46.0 per cent. Of the responses, 76 per cent came from the web questionnaire (of the sample the share was 35%).

EU results

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