Home > Statistics > Consumer Confidence > 2007 > November > Consumers' confidence in Finland's economy and employment wavers

Published: 27 November 2007

Consumers' confidence in Finland's economy and employment wavers

Consumers' confidence in the economy weakened in November. The consumer confidence indicator stood at 14.5 in November, having been 17.3 in October and 17.9 one year ago. Nevertheless, confidence in the economy continued to be stronger than the average in the long term. The data are based on Statistics Finland's Consumer Survey, for which 1,447 people resident in Finland were interviewed between 1 and 19 November.

Of the four components of the consumer confidence indicator, expectations concerning Finland's economy and development of unemployment weakened in November from the previous month. By contrast, belief in own saving possibilities gained strength, and views concerning own economy were very bright on the whole. Consumers regarded saving especially worthwhile in November, in contrast to their views on raising a loan or purchasing durable goods. Consumers expected inflation to accelerate in the coming months

Consumer views on the economic and financial conditions in Finland in November 2007, balances*

	Average 10/95-	Max. 10/95-	Min. 10/95-	November 2006	October 2007	November 2007	Situation***
Consumer confidence indicator (CCI)	13.9	21.8	3.5	17.9	17.3	14.5	+
CCI components:
Own economic situation in 12 months' time	9.5	14.1	2.3	12.9	12.1	12.7	++
Households' saving possibilities in the next 12 months	34.6	52.0	10.9	47.5	46.6	51.8	++
Finland's economic situation in 12 months time	6.0	21.7	-14.0	3.3	-4.1	-7.9	- -
Finland's unemployment situation in 12 months time	5.7	27.6	-22.7	7.8	14.4	1.5	-
Others:
Inflation in 12 months' time, per cent	2.0	3.3	0.7	2.3	3.3	3.3
Own threat of unemployment at present**	4.2	7.2	0.8	4.2	5.4	4.3	+
Financial situation of household at present	25.9	35.1	14.7	30.9	31.6	31.8	++
Favourable time to make major purchases at present	20.8	37.7	-2.1	20.9	10.9	9.5	- -
Favourable time to save at present	9.1	36.8	-19.6	27.3	35.4	36.8	++
Favourable time to raise a loan at present	21.5	42.0	-13.5	17.0	-3.3	-3.6	- -
* 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 the CCI components. 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. ** Own threat of unemployment has only been asked since March 2004. *** ++ Situation is very good, + Situation is good, - Situation is bad, - - Situation is very bad.

In November, 18 per cent of consumers believed that Finland's economic situation would improve in the coming twelve months, while 33 per cent of them thought that the country's economy would deteriorate. In October, the respective proportions were 21 and 28 per cent and twelve months earlier 24 and 17 per cent. In all, 32 per cent of consumers believed in November that their own economy would improve and only 10 per cent of them feared it would worsen over the year.

Altogether 36 per cent of consumers thought in November that unemployment would decrease over the coming year, while 32 per cent of them believed it would increase. In October, the respective proportions were 47 and 18 per cent and twelve months ago 40 and 23 per cent. Fourteen per cent of employed persons reckoned in November that their personal threat of unemployment had lessened over the past few months, while 10 per cent thought it had grown.

Consumers predicted in November that consumer prices would go up by 3.3 per cent over the next 12 months. As in October, this was the highest prediction ever for the 1995 to 2007 period. The long-term predicted average inflation rate is 2.0 per cent.

Saving was considered worthwhile by a record 81 per cent of consumers in November. Twelve months earlier the corresponding percentage was 72. Sixty-six per cent of households had been able to lay aside some money and as many as 82 per cent believed they would be able to do so during the next 12 months.

In November, 46 per cent of consumers regarded the time good for raising a loan. Twelve months earlier, the respective proportion was 64 per cent. Nevertheless, 13 per cent of households were planning to raise a loan within one year.

In November, 40 per cent of consumers thought the time was favourable for buying durable goods. Twelve months before, the respective proportion was 44 per cent. Many households had intentions to spend money on, for instance, dwelling repairs during the next six months. Interest in the purchasing of a car increased in November, for 21 per cent of households were fairly or very certain to buy one in the next twelve months. In November, eight per cent of households were thinking about purchasing a dwelling within a year.

Consumer confidence indicator (CCI) 10/1995-11/2007

Consumers' micro and macro indicators 10/1995-11/2007*

* Micro indicator is the average of three balances: own economy and household's saving possibilities in 12 months' time,
and household's financial situation at present.
Macro indicator is the average of two balance figures: Finland's economy and unemployment in 12 months' time.

Deviation of CCI from country average in EU member states, October 2007
(average: 10/1995-)*

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

Source: Consumer Survey 2007, November 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 27.11.2007