Consumer confidence rose but was still very weak in January 2023

Consumer confidence in areas of residence and population groups

In January, consumer confidence in the economy was strongest in Greater Helsinki (CCI -8.6). Confidence was weakest in Northern Finland (-18.2). Of population groups, students were most optimistic (-2.0). Pensioners had the gloomiest expectations concerning economic development (-24.8) in January. More detailed information is available in the figures and database tables.

Consumers' own and Finland's economy

Consumers' views on the economic and financial conditions improved in January from December. Despite this, the assessment of the present situation and expectations concerning one's own economy and Finland's economy were still very weak. Compared to last year's January, the economic outlook was now clearly gloomier.

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Thirty-five per cent of consumers thought in January that their own economy is weaker than one year ago. Only 21 per cent of consumers regarded their own economy stronger at the time of the survey than one year ago. As many as 81 per cent of consumers thought that Finland’s economy was now worse than a year ago, and only five per cent saw it better.

In January, 19 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months. Nearly one half, 46 per cent of consumers thought that the country’s economy would deteriorate. In all, 28 per cent of consumers believed in January that their own economy would improve and 22 per cent of them feared it would worsen over the year.

Unemployment and its threat

Consumers’ expectations about the development of the general unemployment situation in Finland improved in January to the long-term average level. Altogether 18 per cent of consumers expected that unemployment would decrease over the year, 40 per cent believed it would increase.

In January, employed consumers (wage and salary earners and self-employed persons) reckoned that their personal threat of unemployment or lay-off was similar to the long-term average. Six 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. Nearly one half or 47 per cent of employed persons felt in January that they were not threatened by unemployment or temporary lay-off at all.

Inflation

In January, consumers' expectations concerning inflation in one year's time and now also their estimate of it at the time of the survey fell somewhat.

Consumers estimated in January that consumer prices have risen by 8.1 per cent from last year's January and would go up by 5.3 per cent over the next year. Altogether 89 per cent of consumers thought that consumer prices have risen much or fairly much over the year, only 40 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

As in the past few months, the time was considered very poor for taking out a loan and also for saving in January. Just 12 per cent of consumers regarded the time favourable for taking out a loan and 36 per cent considered saving worthwhile. At the same time, intentions to take out a loan were also quite low. In January, 14 per cent of consumers were planning to take out a loan within one year.

Consumers regarded their own financial situation as normal in January. Similarly, it was expected that there would be a reasonable amount of saving possibilities in the coming months. Fifty-five 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 January, the time was still regarded very unfavourable for buying durable goods. Only 10 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 very low in January. Intentions to purchase increased a little from December but fell back compared to one year ago. Just 10 per cent of consumers planned on increasing and nearly one half, or 47 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 January than normal in the long-term. By contrast, there were more intentions to buy a dwelling than usual for a change. Plans for renovating one's dwelling were still average.

In January, only 12 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Fourteen per cent of consumers considered buying a dwelling or building a house. Eighteen per cent of consumers were planning to spend money on renovating their dwelling 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 January 2023, a total of 1,002 persons participated in the Survey and the response rate was 45.8 per cent. Of the responses, 80 per cent came from the web questionnaire (of the sample the share was 37%).

EU results

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