Consumer confidence low in December 2023 – concern for own financial situation and unemployment

Consumer confidence in areas of residence and population groups

In December, consumer confidence was strongest in Greater Helsinki (CCI -10.5). Confidence was weakest in Eastern Finland (-16.2). Of population groups, self-employed persons were most optimistic (-5.9) in December. Unemployed persons had the gloomiest expectations concerning economic development (-21.3). More detailed information is available in the database tables and figures.

Consumers' own and Finland's economy

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

Views on consumers’ own economy at present deteriorated slightly in December from November, while expectations concerning it remained unchanged. Expectations concerning Finland's economy improved a little. Compared to the corresponding period of the previous year, views on one's own and Finland's economy improved somewhat.

Content is being loaded

As many as 36 per cent of consumers thought in December that their own economy was weaker than one year ago. Twenty per cent of consumers regarded their own economy stronger at the time of the survey than one year ago. As many as 73 per cent of consumers thought that Finland’s economy is now worse than one year earlier, and only six per cent saw it as better.

In December, only 18 per cent of consumers believed that Finland’s economic situation would improve in the coming 12 months, while 43 per cent of them thought that our country’s economy would deteriorate. In all, 28 per cent of consumers believed in December 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 remained unchanged in December and on a dismal level. Only 10 per cent of consumers expected that unemployment would decrease over the next year and as many as 61 per cent reckoned it would increase.

In December employed consumers (wage and salary earners and self-employed persons) felt that their personal threat of unemployment or lay-off had grown slightly. The threat was estimated to be clearly greater than the long-term average and the worst in three years. Three per cent of employed persons believed that their personal threat had lessened and 24 per cent thought the risk had grown. On the other hand, 45 per cent of employed persons felt in December that they were not threatened by unemployment or lay-off at all.

Inflation

In December, consumers' estimates of the inflation at the time of the survey and concerning price changes in one year's time continued to fall but they were still high.

Consumers estimated in December that consumer prices have risen by 6.6 per cent from last year's December and would go up by 4.1 per cent over the next year. Altogether 78 per cent of consumers thought that prices had gone up much or fairly much over the year. Clearly fewer, or 39 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 December, the time was still regarded very poor for taking out a loan and also for saving. Only 10 per cent of consumers regarded the time favourable for taking out a loan and 38 per cent considered saving worthwhile. At the same time, there were fewer intentions to raise a loan in December than usual. Fourteen per cent of consumers were planning to raise a loan within one year.

Consumers' estimate of their own financial situation fell in December to the lowest level since 2000. Consumers estimated that they would have slightly fewer saving possibilities in the coming months than in general. Only one half or 51 per cent of consumers had been able to lay aside some money in December 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 December, 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 continued very low in December. Purchase intentions decreased compared to November but grew slightly from one year ago. Just seven per cent of consumers planned on increasing and around one half, 48 per cent, on reducing their spending on durable goods over the next 12 months.

Plans to buy a car during the year were still lower than usual in December. Intentions to buy a dwelling decreased again and remained below the long-term average level. By contrast, there were more intentions to renovate one's dwelling in December than one month earlier, being around average.

In December, 12 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Similarly, 12 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. In December 2023, a total of 1,235 persons participated in the Survey and the response rate was 56.6 per cent. Of the responses, 80 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.