Home > Statistics > Consumer Confidence > 2008 > May > Consumers' confidence also in their own economy has weakened slightly

Published: 27 May 2008

Consumers' confidence also in their own economy has weakened slightly

Consumers' confidence in the economy weakened slightly in May. In May the consumer confidence indicator stood at 11.1, while in April it was 12.6. When compared with one year ago and with the long-term average, confidence in the economy was weaker. The data are based on Statistics Finland's Consumer Survey, for which 1,473 people resident in Finland were interviewed between 2 and 19 May.

Consumers' confidence in all four components of the consumer confidence indicator weakened slightly in May from the previous month. In May, consumers' expectations concerning Finland's economy were about as bleak as in 2001. Consumers' views on their own economy were also at their lowest since 1997. However, consumers continued to regard their own employment prospects, their financial situation and saving possibilities as excellent. Inflation was expected to accelerate clearly, and instead of buying durable goods or taking out a loan consumers considered saving very worthwhile in May.

Consumer views on the economic and financial conditions in Finland in May 2008, balances*

	Average 10/95-	Max. 10/95-	Min. 10/95-	May 2007	April 2008	May 2008	Situation**
Consumer confidence indicator (CCI)	13.9	21.8	3.5	17.7	12.6	11.1	-
CCI components:
Own economic situation in 12 months' time	9.5	14.1	2.3	10.7	9.3	6.6	- -
Households' saving possibilities in the next 12 months	35.1	52.0	10.9	47.7	49.2	47.9	++
Finland's economic situation in 12 months time	5.3	21.7	-14.3	3.3	-12.9	-14.3	- -
Finland's unemployment situation in 12 months time	5.5	27.6	-22.7	9.2	5.0	4.3	-
Others:
Inflation in 12 months' time, per cent	2.1	4.2	0.7	2.4	3.7	4.2
Own threat of unemployment at present	4.4	7.6	0.8	6.6	7.3	6.2	++
Financial situation of household at present	26.2	35.1	14.7	30.3	31.4	32.9	++
Favourable time to make major purchases at present	20.8	37.7	-2.1	18.7	24.6	8.2	- -
Favourable time to save at present	10.0	36.8	-19.6	33.3	33.1	31.1	++
Favourable time to raise a loan at present	20.6	42.0	-13.5	5.6	1.3	-5.8	- -
* 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 - the higher the balance figure the brighter the view on the economy. ** ++ Situation is very good, + Situation is good, - Situation is bad, - - Situation is very bad.

In May, 13 per cent of consumers believed that Finland's economic situation would improve in the coming twelve months. while as many as 40 per cent of them thought that the country's economy would deteriorate. Twelve months earlier the corresponding proportions were 25 and 18 per cent. In all, 26 per cent of consumers believed in May that their own economy would improve and already 15 per cent of them feared it would worsen over the year. The corresponding proportions were 28 and 13 per cent in April and 29 and 10 per cent one year ago.

Altogether 35 per cent of consumers thought in May that unemployment would decrease over the year, while 26 per cent of them believed it would increase. Sixteen per cent of employed persons reckoned that their personal threat of unemployment had lessened over the past few months, while 11 per cent thought it had grown.

Consumers predicted in May that consumer prices would go up by as much as 4.2 per cent over the next 12 months. The long-term predicted average inflation rate is 2.1 per cent.

A total of 75 per cent of consumers considered saving worthwhile in May. Sixty-six per cent of households had been able to lay aside some money and 80 per cent believed they would be able to do so during the next 12 months. In May, only 43 per cent of consumers regarded the time good for raising a loan. One month ago the respective proportion was 50 per cent and one year ago 54 per cent. However, as many households as one year previously, or 13 per cent, were planning to take out a loan within one year.

In May, 40 per cent of consumers thought the time was favourable for buying durable goods, whereas 48 per cent of households thought so one month before. Households had slightly less intentions of spending money in May than before, but they did have plans of purchasing domestic appliances, among other things, during the next six months. 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 (CCI) 10/1995-5/2008

Consumers' micro and macro indicators 10/1995-5/2008*

* Micro indicator is the average of three balance figures: 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, April 2008

* Calculated from seasonally adjusted series; average: 10/1995-
Source: European Commission, DG ECFIN, Business and Consumer Survey Results, April 2008
http://ec.europa.eu/economy_finance/db_indicators/db_indicators8650_en.htm

Source: Consumer Survey 2008, May. 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 27.5.2008