Home > Statistics > Consumer Confidence > 2007 > February > Consumers' confidence in their own economy at its height

Published: 27 February 2007

Consumers' confidence in their own economy at its height

Consumers' confidence in the economy remained almost unchanged in February when compared with the previous month and February 2006. The consumer confidence indicator stood at 16.8. In February, confidence in the economy was stronger than the long-term average. The data are based on Statistics Finland's Consumer Survey, for which 1,568 people resident in Finland were interviewed between 1 and 19 February.

Of the four components of the consumer confidence indicator, expectations of one's own economy and saving possibilities improved to record levels in February. By contrast, views concerning Finland's economy and especially the development of unemployment weakened after a positive period over the past few months. In February, consumers found their own financial situation better and saving more worthwhile than ever before.

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

	February 2007 balance figure	January 2007 balance figure	February 2006 balance figure	Average 10/95-2/07
Consumer confidence indicator (CCI)	16.8	18.3	17.0	13.7
CCI components:
Own economic situation in 12 months' time	14.1	12.3	12.5	9.4
Household's saving possibilities in the next 12 months	50.9	47.0	48.1	33.6
General economic situation in Finland in 12 months' time	1.4	4.3	5.6	6.4
Unemployment in Finland in 12 months' time	0.7	9.6	1.8	5.3
Others:
Inflation in 12 months' time. %	2.4	2.4	2.1	2.0
Personal threat of unemployment at present	4.7	5.1	4.3	..
Financial situation of household at present	35.1	32.6	34.7	25.5
Favourable time to make major purchases at present	26.5	28.1	24.9	21.1
Favourable time to save at present	32.4	28.7	17.9	7.5
Favourable time to raise a loan at present	15.4	12.4	27.1	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 February, 24 per cent of consumers believed that Finland's economic situation would improve in the coming twelve months, while 20 per cent of them thought that the country's economy would deteriorate. In all, 33 per cent of consumers believed in February that their own economy would improve and only 9 per cent of them feared it would worsen over the year.

Altogether 31 per cent of consumers thought in February that unemployment would increase over the year, and 35 per cent of them believed it would decrease. In January, the respective proportions were 24 and 43 per cent. In February, 10 per cent of employed persons reckoned that their personal threat of unemployment had grown over the past few months, whereas more, or 13 per cent, thought it had lessened.

Consumers predicted in February 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 2.1 per cent.

Saving was considered worthwhile by a record 76 per cent of consumers in February. Twelve months earlier the corresponding percentage was 65. Seventy per cent of households had been able to lay aside some money and 82 per cent believed they would be able to do so during the next 12 months. These proportions were also the largest ever.

In February, 63 per cent of consumers regarded the time good for raising a loan. One year ago the respective percentage was 72 per cent. Fifteen per cent of households were planning to raise a loan within one year.

In February, 48 per cent of consumers thought the time was favourable for buying durable goods. Many households intended to spend money on purchasing entertainment electronics, home repairs and furnishings as well as travelling. Major purchases also remained attractive; in the next twelve months, 19 per cent of households were fairly or very certain to buy a car and 10 per cent a dwelling.

Consumer confidence indicator 10/1995-2/2007

Consumers' expectations concerning their own and Finland's economy in 12 months' time 10/1995-2/2007

Consumer confidence indicator in EU Member States, January 2007
Deviation of indicator from country average 10/1995 - 1/2007*

*Calculated from seasonally adjusted series
Source: European Commission, DG ECFIN, Business and Consumer Survey Results, January 2007
http://europa.eu.int/comm/economy_finance/indicators/businessandconsumersurveys_en.htm

Source: Consumer Survey 2007, February. Statistics Finland

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

Director in charge: Mr Ari Tyrkkö

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Last updated 27.2.2007