Consumers' view on the economy became gloomier in April 2024 – not tempting to buy a dwelling or a car

Consumer confidence in areas of residence and population groups

In April, consumer confidence in the economy was strongest in Greater Helsinki (CCI -8.5). Confidence was weakest in Northern Finland (-17.2). Among population groups, upper-level salaried employees were clearly most optimistic in April (-4.7). Pensioners had the gloomiest expectations concerning economic development (-22.8). More detailed information is available in the figures and database tables.

Consumers' own and Finland's economy

Consumers' views concerning their own and Finland's economy weakened in April from March and also from one year ago.

In April, consumers' expectations concerning Finland's economy in 12 months’ time were on a gloomy level. Expectations concerning consumers' own economy and especially estimates of their own economy at present were very weak.

Content is being loaded

As many as 33 per cent of consumers thought in April 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 74 per cent of consumers thought in April that Finland’s economic situation was now worse than one year earlier, and only four per cent saw it as better.

In April, 19 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 42 per cent of them thought that our country’s economy would deteriorate. In all, 27 per cent of consumers believed in April 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 became still gloomier in April. Eleven per cent of consumers expected that unemployment would decrease over the year and 58 per cent believed it would increase.

In April, employed consumers (wage and salary earners and self-employed persons) felt that their personal threat of unemployment or lay-off had still remained fairly high. Four per cent of employed persons believed that their personal threat had lessened and 22 per cent thought the risk had grown. On the other hand, 45 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 the inflation at the time of the inquiry and expectations concerning price changes in a year continued to fall slightly. All in all, their estimates of inflation were still fairly high.

Consumers estimated in April that consumer prices have risen by 5.7 per cent from April last year and would go up by 3.8 per cent over the next year. Altogether 65 per cent of consumers thought that consumer prices have risen much or fairly much over the year, and 44 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

In April, 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 38 per cent considered saving worthwhile. At the same time, intentions to raise a loan were slightly lower in April than usual. Fourteen per cent of consumers were planning to raise a loan within one year.

Consumers' assessment of their own financial situation remained on the long-term average level in April. Consumers estimated that they would have slightly fewer saving possibilities in the coming months than usual. In April, good one half or 55 per cent of consumers had been able to lay aside some money and 70 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 12 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 April. Intentions to make purchases fell from April and also from one year ago. In April, only eight per cent of consumers estimated that they would increase and as many as 44 per cent would reduce their spending on durable goods over the next 12 months.

In April, there were clearly fewer plans than usual to buy a car over the next 12 months. Intentions to buy a dwelling also remained low: very few consumers had a new dwelling in mind. By contrast, intentions to renovate one's own dwelling increased in April to the average level.

In April, only 11 per cent of consumers were either definitely or possibly going to buy a passenger car during the next 12 months. Only 10 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 self-filled web questionnaire and by telephone interviews. Answers are mainly given by means of answer options. In April 2024, a total of 1,211 persons participated in the Survey and the response rate was 56 per cent. Of the responses, 81 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.