Home > Statistics > Consumer Confidence > 2009 > June > People in Finland consider the time favourable for consumption

Published: 29 June 2009

People in Finland consider the time favourable for consumption

Consumers' confidence in the economy continued to strengthen slightly in June. The consumer confidence indicator stood at 8.4 in June whereas in May it was 7.2 and in April 1.0. However, confidence in the economy was in June still clearly weaker than the long-term average. The data are based on Statistics Finland's Consumer Survey, for which 1,494 people resident in Finland were interviewed between 1 and 18 June.

In June, all four components of the consumer confidence indicator showed some improvement or remained almost unchanged from the previous month. Consumers had more optimism regarding their own economic situation than in recent months and households assessed their saving possibilities as good. In June, the time was considered even more favourable than before especially for purchasing durable goods and for raising a loan.

After a weak period of eighteen months, consumers' expectations on Finland's economy were positive for the second successive month in June. Estimates concerning the development of unemployment are also gradually brightening, but were still on the gloomy side in June. In addition, many employed experienced a personal threat of unemployment in June.

Consumer views on the economic and financial conditions in Finland in June 2009, balances*

	Average 10/95-	Max. 10/95-	Min. 10/95-	June 2008	May 2009	June 2009	Outlook**
Consumer confidence indicator (CCI)	13.0	21.8	-6.5	10.2	7.2	8.4	-
CCI components:
Own economic situation in 12 months' time	9.1	14.1	2.3	5.8	5.6	7.1	-
Households' saving possibilities in the next 12 months	36.0	52.0	10.9	46.9	46.8	47.4	+
Finland's economic situation in 12 months time	3.9	21.7	-27.1	-17.0	9.5	9.2	+
Finland's unemployment situation in 12 months time	2.8	27.6	-51.1	5.0	-33.2	-30.1	- -
Others:
Inflation in 12 months' time, per cent	2.1	4.6	0.7	4.6	1.5	1.5
Own threat of unemployment at present	2.0	7.6	-18.8	6.4	-16.9	-16.5	- -
Financial situation of household at present	26.6	35.1	14.7	31.1	32.9	32.3	+
Favourable time to make major purchases at present	20.1	37.7	-14.2	2.9	34.0	36.1	++
Favourable time to save at present	10.9	36.8	-19.6	29.7	12.0	9.9	+/-
Favourable time to raise a loan at present	18.0	42.0	-47.1	-20.8	14.4	16.8	+/-
* 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. ** ++ Outlook is very good, + Outlook is good, +/- Outlook is neutral, - Outlook is poor, - - Outlook is very poor. Deviation of balance from average has been compared to standard deviation.

In June, 45 per cent of consumers believed that Finland's economic situation would improve in the coming twelve months, while 24 per cent of them thought that the country's economy would deteriorate. Twelve months earlier the respective proportions were 12 and 43 per cent. In all, 25 per cent of consumers believed in June that their own economy would improve and 12 per cent of them feared it would worsen over the year.

Only 15 per cent of consumers thought in June that unemployment would decrease over the next year, while 64 per cent of them believed it would increase. Twelve months earlier the respective proportions were 35 and 24 per cent.

Just 7 per cent of employed persons believed in June that their personal threat of unemployment had lessened over the past few months whereas 30 per cent thought it had grown. Twelve months earlier the respective proportions were 17 and 10 per cent. In June, 41 per cent of employed persons thought the threat had remained unchanged and 22 per cent felt that they were not threatened by unemployment at all.

Consumers predicted in June that consumer prices would go up by 1.5 per cent over the next 12 months. In June last year the respective figure was at its highest, or 4.6 per cent. The long-term predicted average inflation rate is 2.1 per cent.

In June, 57 per cent of consumers considered saving worthwhile. Twelve months earlier the corresponding percentage was 74. Sixty-five 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 year.

As many as 62 per cent of consumers regarded June a good time for raising a loan. At its lowest last October the proportion was only 13 per cent. This June, 13 per cent of households were planning to take out a loan within one year.

In June, 59 per cent of consumers thought the time was favourable for buying durable goods. One year previously the respective share was 37 per cent and at its lowest last October it stood at 30 per cent. In June, many households had plans to purchase, among other things, home technology during the next six months. Sixteen per cent of households were fairly or very certain to buy a car and 7 per cent a dwelling during the next 12 months. In last year's June the corresponding proportions were 16 and 8 per cent.

An article on the prevalence of diverse appliances and connections in households based on data from the Consumer Survey will be published in Finnish in the next issue (4-5/2009) of Statistics Finland's Tieto&Trendit periodical.

Consumer confidence indicator (CCI) 10/1995-6/2009

Consumers' micro and macro indicators 10/1995-6/2009*

* 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, May 2009*

* Calculated from seasonally adjusted series. Average: 10/1995-. Data for Ireland missing.
Source: European Commission, DG ECFIN, Business and Consumer Survey Results, May 2009
http://ec.europa.eu/economy_finance/db_indicators/db_indicators8650_en.htm

Source: Consumer Survey 2009, June. Statistics Finland

Inquiries: Mr Pellervo Marja-aho +358 9 1734 3349,kuluttaja.barometri@stat.fi

Director in charge: Mr Ari Tyrkkö

Consumer Confidence 2009, June (pdf 188.8 kB)

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Last updated 29.6.2009