Home > Statistics > Consumer Confidence > 2007 > January > Consumers are confident about the economy and invest in funds

Published: 29 January 2007

Consumers are confident about the economy and invest in funds

In January consumers' confidence in the economy remained unchanged from December. The consumer confidence indicator stood at 18.3. In January, confidence in the economy was stronger than on average since 1995 and at the same time, the strongest since January 2001. The data are based on Statistics Finland's Consumer Survey, for which 1,584 people resident in Finland were interviewed between 2 and 19 January.

Of the four components of the consumer confidence indicator, expectations of one's own economy and of Finland's unemployment improved slightly in January compared with the previous month. Consumer's estimate of Finland's economy remained unchanged and their outlook on their saving possibilities weakened somewhat. Compared with the same period one year ago, especially confidence in the decrease of unemployment grew clearly stronger. In addition, consumers considered saving very worthwhile and especially investing in funds became even more common. In contrast, the popularity of raising a loan continued to decrease.

Consumer views on the economic and financial conditions in Finland in January 2007

	January 2007 balance figure	December 2006 balance figure	January 2006 balance figure	Average 10/95-1/07
Consumer confidence indicator (CCI)	18.3	18.2	13.7	13.7
CCI components:
Own economic situation in 12 months' time	12.3	10.9	10.1	9.4
Household's saving possibilities in the next 12 months	47.0	49.4	41.7	33.5
General economic situation in Finland in 12 months' time	4.3	4.3	4.0	6.5
Unemployment in Finland in 12 months' time	9.6	8.0	-1.0	5.3
Others:
Inflation in 12 months' time. %	2.4	2.5	2.2	2.0
Personal threat of unemployment at present	5.1	6.1	3.8	..
Financial situation of household at present	32.6	33.0	31.4	25.4
Favourable time to make major purchases at present	28.1	20.4	31.1	21.0
Favourable time to save at present	28.7	28.7	12.7	7.3
Favourable time to raise a loan at present	12.4	17.0	26.0	22.9
The balance figures are obtained by deducting the weighted proportion of negative answers from that of positive answers. The consumer confidence indicator is the average of the balance figures for four questions concerning the next 12 months: own and Finland's economy, unemployment and household's saving possibilities. The balance figures and the confidence indicator can range between -100 and 100. A positive balance figure denotes an optimistic and a negative balance figure a pessimistic view on the economy.

In January 26 per cent of consumers believed that Finland's economic situation would improve in the coming twelve months, while 17 per cent of them thought that the country's economy would deteriorate. In all, 32 per cent of consumers believed in January that their own economy would improve and only 10 per cent of them feared it would worsen over the year.

Altogether 24 per cent of consumers thought in December that unemployment would increase over the year, while 43 per cent believed it would decrease. Twelve months earlier, the corresponding proportions were 33 and 32 per cent. In January 10 per cent of employed persons reckoned that their personal threat of unemployment had grown over the past few months, whereas clearly more, or 15 per cent, thought it had lessened.

In January consumers predicted that consumer prices would go up by 2.4 per cent over the next 12 months. One year previously the respective predicted inflation rate was 2.2 per cent.

As many as 73 per cent of consumers considered saving worthwhile in January. Twelve months earlier the corresponding percentage was 60. Sixty-five per cent of households had been able to lay aside some money, and 79 per cent believed they would be able to do so during the next 12 months. Most savings are still made for the rainy day. As many as 30 per cent of households had invested money in investment funds in January. All in all 36 per cent of households had invested in various kinds of securities. Twenty-six per cent of households had insurance savings.

In January 60 per cent of consumers regarded the time good for raising a loan. One month ago the respective proportion was 64 per cent and one year ago 71 per cent. Thirteen per cent of households were planning to raise a loan within one year.

In January 48 per cent of consumers thought the time was favourable for buying durable goods. Many households intended to spend money on, for example, home repairs and furnishings and travelling. Thirty-six per cent of households considered purchasing a digital TV converter by summer. In the next twelve months, 18 per cent of households were fairly or very certain to buy a car and 8 per cent a dwelling.

 

Consumer confidence indicator 10/1995-1/2007

Consumers' expectations concerning their own and Finland's economy in 12 months' time 10/1995-1/2007

Consumer confidence indicator in EU Member States, December 2006
Deviation of indicator from country average 10/1995 - 12/2006*

*Calculated from seasonally adjusted series. Data for France are indicative due to break in time series.
Averages for a shorter time period: Malta 11/2002-, Luxembourg 1/2002-, Cyprus, Lithuania and Poland 1/2001-, Slovakia 4/1999-.
Source: European Commission, DG ECFIN, Business and Consumer Survey Results, December 2006
http://europa.eu.int/comm/economy_finance/indicators/businessandconsumersurveys_en.htm

Source: Consumer Survey 2007, January. Statistics Finland

Inquiries: Mr Pertti Kangassalo +358 9 1734 3598, kuluttaja.barometri@stat.fi

Director in charge: Mr Ari Tyrkkö

Tables

Tables in databases

Pick the data you need into tables, view the data as graphs, or download the data for your use.

• Database tables and their variables
• Archived tables

---

Last updated 29.1.2007