Consumer confidence improved to some extent in January 2024

Consumer confidence in areas of residence and population groups

In January, consumer confidence in the economy was strongest in Greater Helsinki (CCI -4.4). Confidence was weakest elsewhere in Southern Finland (-12.8). Among population groups, upper-level salaried employees were clearly most optimistic in January (-1.6). Pensioners had the gloomiest expectations concerning economic development (-16.2). More detailed information is available in the database tables and figures.

Consumers' own and Finland's economy

In January, consumers' views on their own as well as on Finland's general economy improved both compared to December and the previous year. Consumers' estimate of their own economy at present was still very weak in January, while expectations concerning their own economy in 12 months' time turned bright. Expectations concerning Finland's economy were fairly pessimistic.

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Thirty-one per cent of consumers thought in January that their own economy was weaker than one year ago. Twenty-five per cent of consumers regarded their own economy stronger at the time of the survey than one year earlier. As many as 71 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 January, 20 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 40 per cent of them thought that our country’s economy would deteriorate. As many as 31 per cent of consumers believed in January that their own economy would improve and 16 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 fairly weak in January, even though they improved somewhat. Twelve per cent of consumers expected that unemployment would decrease over the year and 56 per cent believed it would increase.

In January, employed consumers (wage and salary earners and self-employed persons) also felt that their personal threat of unemployment or temporary lay-off had eased slightly. However, the threat was still assessed to be relatively high. Five per cent of employed persons believed that their personal threat had lessened and 23 per cent thought the risk had grown. On the other hand, 43 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' estimates of the inflation at the time of the survey and concerning price changes in one year's time remained more or less unchanged and on a high level.

Consumers estimated in January that consumer prices have risen by 6.5 per cent from last year's January and would go up by 4.2 per cent over the next year. Altogether 75 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 January, the time was still regarded very poor for taking out a loan and also for saving. Just 12 per cent of consumers regarded the time favourable for taking out a loan and 37 per cent considered saving worthwhile. At the same time, intentions to raise a loan were slightly lower in January than usual. Fifteen per cent of consumers were planning to raise a loan within one year.

Consumers' assessment of their own financial situation improved somewhat in January but remained fairly weak. Consumers estimated that they would have slightly fewer saving possibilities in the coming months than in general. In January, good one half or 56 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 considered very unfavourable for buying durable goods even though views about it improved slightly. 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 continued very low in January. However, purchase intentions increased slightly both compared to December and twelve months back. In January, 10 per cent of consumers estimated that they would increase and 43 per cent would reduce their spending on durable goods over the next 12 months.

In January, plans to buy a car over the next 12 months were again on the usual level. By contrast, intentions to buy a dwelling decreased again, and very few consumers had a new dwelling in mind. Plans to renovate one's own dwelling also decreased slightly below their average level in January.

In January, 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. Sixteen 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 January 2024, a total of 1,290 persons participated in the Survey and the response rate was 59 per cent. Of the responses, 78 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.