Consumer confidence weakened in September 2023 – unemployment was thought to worsen

Consumer confidence in areas of residence and population groups

In September, consumer confidence was exceptionally strongest in Northern Finland (CCI -7.3). Confidence was still weakest in Southern Finland outside Greater Helsinki (-14.1). Of population groups, students were clearly most optimistic in September (-3.1). Unemployed persons had now the gloomiest expectations concerning economic development (-20.1). More detailed information is available in database tables and in the figures on the statistics website.

Consumers' own and Finland's economy

In September, consumers’ views concerning their own economy at present and also their expectations concerning their own and Finland's economy in 12 months' time were very weak.

Consumers' views concerning both their own and Finland's economy weakened in September from August. By contrast, compared to the corresponding period of the previous year, expectations concerning the economy improved clearly.

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Thirty-one per cent of consumers thought in September that their own economy was weaker than one year ago. Twenty-one per cent of consumers regarded their own economy stronger at the time of the survey than one year ago. As many as 70 per cent of consumers thought that Finland’s economy is now worse than one year earlier, and only five per cent saw it better.

In September, only 18 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while as many as 43 per cent of them thought that our country’s economy would deteriorate. In all, 26 per cent of consumers believed in September that their own economy would improve and 20 per cent 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 weakened clearly in September and were on a dismal level. Only 12 per cent of consumers expected that unemployment would decrease over the next year and as many as 60 per cent believed it would increase.

Employed consumers (wage and salary earners and self-employed persons) reckoned in September that their personal threat of unemployment or temporary lay-off had weakened only slightly. The threat was estimated to be roughly similar to the long-term average. Six per cent of employed persons believed that their personal threat of unemployment had lessened and 18 per cent thought the risk had grown. Around one half or 48 per cent of employed persons felt in September that they were not threatened by unemployment or temporary lay-off at all.

Inflation

In September, consumers' estimates of the inflation at the time of the survey and concerning price changes in one year's time remained nearly unchanged on a high level.

Consumers estimated in September that consumer prices have risen by 7.3 per cent from last year's September and would go up by 4.5 per cent over the next year. Altogether 83 per cent of consumers thought that prices had gone up much or fairly much over the year. Clearly fewer, or 36 per cent of consumers expected prices to rise at least at the same rate in the coming months as well.

Financial situation, saving and raising a loan

In September, the time was regarded even worse than before for taking out a loan and also for saving. Just eight per cent of consumers regarded the time favourable for taking out a loan and 37 per cent considered saving worthwhile. However, even slightly more than usual were planning to raise a loan in September. Sixteen per cent of consumers were planning to raise a loan within one year.

Consumers' assessment of their own financial situation remained unchanged as average in September. However, it was estimated that there would be still slightly fewer saving possibilities in the coming months than in general. Fifty-six per cent of consumers had been able to lay aside some money and 69 per cent believed they would be able to do so during the next 12 months.

Spending and intentions to make large purchases

In September, 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 September. There was not much change in purchasing intentions compared to August and one year ago. In September, 10 per cent of consumers estimated they would increase and 45 per cent reduce their spending on durable goods over the next 12 months.

In September, there were slightly fewer plans than usual to buy a car over the next 12 months. Intentions to buy a dwelling remained significantly below the long-term average – roughly as low as over 20 years ago. In addition, clearly fewer consumers than usual were considering renovating their dwelling in September.

In September, 14 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Only 10 per cent of consumers considered buying a dwelling or building a house. Just 13 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. In September 2023, a total of 1,166 persons participated in the Survey and the response rate was 53.3 per cent. Of the responses, 79 per cent came from the web questionnaire.

The components of the consumer confidence indicator (CCI) are: own economy now, own economy in 12 months, Finland's economy in 12 months and own intentions to buy durable goods in the next 12 months.

EU results

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