Consumer confidence highest in over a year in April 2023

Consumer confidence in areas of residence and population groups

In April, consumer confidence in the economy was clearly strongest in Greater Helsinki (CCI -0.6). Confidence was weakest in Eastern Finland (-13.2). Among population groups, upper-level salaried employees were most optimistic (-1.2). In April, pensioners clearly had the gloomiest expectations concerning economic development (-19.1). More detailed information is available in the figures and database tables.

Consumers' own and Finland's economy

In April, consumers' expectations concerning their own and Finland's economy in 12 months' time improved clearly compared to both March and one year earlier. Expectations concerning one's own economy were already on the long-term average level. The outlook for Finland's economy still remained fairly weak in April.

Views concerning consumers’ own economy at present weakened especially from the previous year and were very low in April.

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Thirty-three per cent of consumers thought in April that their own economy was 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 74 per cent of consumers thought that Finland’s economy was now worse than one year earlier, and only five per cent saw it better.

In April, 22 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 34 per cent of them thought that the country’s economy would deteriorate. In all, 30 per cent of consumers believed in April that their own economy would improve and 18 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 April but remained on the long-term average level. Twenty per cent of consumers expected that unemployment would decrease over the year and 34 per cent believed it would increase.

At the same time, employed consumers (wage and salary earners and self-employed persons) felt in April that their personal threat of unemployment or temporary lay-off had lessened slightly. The threat was estimated to be on the same level as the long-term average. Five per cent of employed persons believed that their personal threat of unemployment had lessened and 15 per cent thought the risk had grown. Over one half or 54 per cent of employed persons felt in April that they were not threatened by unemployment or temporary lay-off at all.

Inflation

In April, consumers' estimates of inflation at the time of the survey remained almost unchanged. By contrast, expectations concerning the rate of change in prices in one year continued to fall gradually.

Consumers estimated in April that consumer prices have risen by 8.1 per cent from April last year and would go up by 4.9 per cent over the next year. Altogether 91 per cent of consumers thought that prices had gone up much or fairly much over the year. Clearly fewer consumers, or 33 per cent, expected prices to rise at least at the same rate in coming months as well.

Financial situation, saving and raising a loan

As in the preceding few months, the time in April was considered very poor for taking out a loan and also for saving. Just nine per cent of consumers regarded the time favourable for taking out a loan and 39 per cent considered saving worthwhile. At the same time, intentions to take out a loan were also quite low. In April, 14 per cent of consumers were planning to take out a loan within one year.

Consumers considered their own financial situation to be average in April. Consumers expected to have slightly more saving possibilities in the coming months than usual. Fifty-six per cent of households had been able to lay aside some money and 75 per cent believed they would be able to do so during the next 12 months.

Spending and intentions to make large purchases

In April, the time was still regarded very unfavourable for buying durable goods. Only nine 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 still very low in January. Intentions to buy increased slightly from March but fell back compared to one year ago. In April, 11 per cent of consumers planned on increasing and 42 per cent on reducing their spending on durable goods over the next 12 months.

In April, there were slightly fewer plans than usual to buy a car during the next 12 months. By contrast, intentions to buy and renovate one’s dwelling were unchanged from the long-term average.

In April, 13 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Similarly, 13 per cent of consumers considered buying a dwelling or building a house. Seventeen 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 April 2023, a total of 1,020 persons participated in the Survey and the response rate was 46.6 per cent. Of the responses, 79 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.