Consumer confidence remained very weak despite a rise in May 2024 – threat of unemployment increased

Consumer confidence in areas of residence and population groups

In May, consumer confidence was strongest in Greater Helsinki (CCI -6.3). Confidence was weakest in Western Finland (-12.0). Of population groups, self-employed persons were most optimistic (-3.5). Unemployed persons had the most negative expectations concerning economic development (-17.7). In May, women’s (-15.2) interpretation of the economic development was clearly gloomier than men’s (-5.4). More detailed information is available in the figures and database tables.

Consumers' own and Finland's economy

Consumers’ views on both their own and Finland’s economy improved slightly in May compared to April but weakened somewhat from the year before.

In May, consumers’ estimates concerning their own economy at present and expectations concerning it in 12 months' time were at a very weak level. Expectations concerning Finland’s economy were also fairly gloomy.

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Thirty-three per cent of consumers thought in May 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. In May, 71 per cent of consumers thought that Finland’s economy was worse than one year earlier, and six per cent saw it as better.

In May, 22 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 39 per cent of them thought that the country’s economy would deteriorate. In all, 27 per cent of consumers believed in May 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 and gloomy in May. Thirteen 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 May that their personal threat of unemployment or lay-off had grown ever greater. Only three per cent of employed persons believed that their personal threat of unemployment had lessened and as many as 28 per cent thought the risk had grown. On the other hand, 40 per cent of employed persons felt in May that they were not threatened by unemployment or temporary lay-off at all.

Inflation

In May, consumers’ estimates of inflation at the time of the survey continued its slight decline. By contrast, expectations concerning price changes in one year's time rose. All in all, estimates of inflation were fairly high.

Consumers estimated in May that consumer prices have risen by 5.5 per cent from May last year and would go up by 4.3 per cent over the next year. Altogether 68 per cent of consumers thought consumer prices have risen much or fairly much over the year, and half, or 50 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 May, the time was still regarded very poor for raising a loan and also for saving. Only 13 per cent of consumers regarded the time favourable for raising a loan and 38 per cent considered saving worthwhile. However, plans to raise a loan were on a slightly higher level than usual in May. Sixteen per cent of consumers were planning to raise a loan within one year.

Consumers' assessments of their own financial situation remained on the long-term average level in May. It was estimated that there would be slightly fewer saving possibilities in the coming months than usually. In May, good one-half, or 56 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 May, the time was still considered very unfavourable for buying durable goods. Only 11 per cent of consumers thought the time was favourable for making expensive purchases.

Consumers’ intentions to spend money on durable goods during the next 12 months continued to be very scarce in May. However, the intentions to make purchases increased slightly compared to the month before . In May, 10 per cent of consumers estimated they would increase and 42 per cent that they would reduce their spending on durable goods over the next 12 months.

In May, consumers’ plans to buy a car over the next 12 months were slightly more cautious than usual. Plans to buy a dwelling remained faint: very few consumers had a new dwelling in mind. Intentions to renovate one's own dwelling were also lower in May than on average.

In May, 13 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Only 11 per cent of consumers were planning to buy a dwelling or build a house. Sixteen per cent of consumers considered spending money on renovating their home 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 May 2024, a total of 1,154 persons participated in the Survey and the response rate was 53 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.