Consumer confidence weak but rising in June 2024 – interest to buy a dwelling arisen

Consumer confidence in areas of residence and population groups

In June, consumer confidence in the economy was strongest in Greater Helsinki (CCI -5.0). Confidence was weakest in Western Finland (-10.3). Among population groups, upper-level salaried employees were most optimistic (0.8). Pensioners had the gloomiest expectations concerning economic development (-15.9). Women (-10.7) described economic development clearly gloomier in June than men (-4.5). More detailed information is available in the figures and database tables.

Consumers' own and Finland's economy

Consumers' views concerning both their own and Finland's economy improved in June compared to May. Compared to one year earlier, the differences were mostly minor.

In June, consumers' estimates of their own economy at present were still very weak. Expectations concerning their own and Finland's economy in 12 months' time were subdued.

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Twenty-nine per cent of consumers thought in June that their own economy was weaker at the time of the survey than one year ago. Twenty-two per cent of consumers regarded their own economy stronger than in the previous year. Fifty-nine per cent of consumers thought in June that Finland’s economic situation was now worse than one year earlier, and 12 per cent saw it better.

In June, 26 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 34 per cent of them thought that the country’s economy would deteriorate. In all, 28 per cent of consumers believed in June that their own economy would improve and 17 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 improved slightly in June but still remained on a weak level. Only 17 per cent of consumers expected that unemployment would decrease over the next year, and about one half, 51 per cent, believed it would increase.

Employed consumers (wage and salary earners and self-employed persons) reckoned in June that their personal threat of unemployment or lay-off was still high. Six per cent of employed persons believed that their personal threat of unemployment had lessened and 28 per cent thought the risk had grown. On the other hand, 42 per cent of employed persons felt in June that they were not threatened by unemployment or temporary lay-off at all.

Consumer prices

In June, consumers' estimates of the inflation at the time of the survey and concerning price changes in one year's time were somewhat lower. Estimates of inflation were, however, still fairly high.

Consumers estimated in June that consumer prices have risen by 5.3 per cent from June last year and would go up by 3.8 per cent over the next year. Altogether 66 per cent of consumers thought that consumer prices have risen much or fairly much over the year, and 43 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 June, the time was still regarded very poor for taking out a loan and also for saving. Just 17 per cent of consumers regarded the time favourable for taking out a loan and 41 per cent considered saving worthwhile. However, somewhat more than usual were planning to raise a loan in June. Sixteen per cent of consumers were planning to take out a loan within one year.

Consumers' assessment of their own financial situation was slightly weaker in June than the long-term average. Consumers estimated that they would have slightly fewer saving possibilities in the coming months than usual. In June, good one half or 55 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 June, the time was still regarded very unfavourable for buying durable goods. Only 13 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 June. Intentions to buy grew slightly compared to one year earlier, however. In June, 10 per cent of consumers estimated that they would increase and 41 per cent would reduce their spending on durable goods over the next 12 months.

In June, consumers were slightly more cautious than usual about buying a car in the next 12 months. By contrast, planning to buy a dwelling grew: after a long time, clearly more consumers than usual were thinking of buying a dwelling. In June, fewer intentions to renovate one's dwelling were reported than average.

In June, 14 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Fifteen 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 self-filled web questionnaire and by telephone interviews. Answers are mainly given by means of answer options. In June 2024, a total of 1,143 persons participated in the Survey and the response rate was 52 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.