Home > Statistics > Consumer Confidence > 2010 > February > Consumers confident about the economy despite threat of unemployment

Published: 25 February 2010

Consumers confident about the economy despite threat of unemployment

Consumers' confidence in the economy continued to strengthen slightly in February. The consumer confidence indicator stood at 15.9 in February, having been 14.5 in January and 14.4 in December. When compared with one year ago and with the long-term average, consumers' confidence was stronger in February. The data are based on Statistics Finland's Consumer Survey, for which 1,460 people resident in Finland were interviewed between 1 and 17 February.

Of the four components of the consumer confidence indicator, only views concerning own saving possibilities improved in February from the previous month. Other expectations remained more or less unchanged. Consumers' view of their own economy and particularly of Finland's economy was bright. In contrast, their assessments about general and own unemployment were still gloomy. Consumers regarded February a favourable time to purchase especially durable goods.

Consumer views on the economic and financial conditions in Finland in February 2010, balances¹⁾

	Average 10/95-	Max. 10/95-	Min. 10/95-	February  2009	January 2010	February 2010	Outlook2)
Consumer confidence indicator	12.9	21.8	-6.5	-3.9	14.5	15.9	+
CCI components:
Own economic situation in 12 months' time	9.1	14.1	2.3	3.0	10.2	10.8	+
Household's saving possibilities in the next 12 months	36.5	52.0	10.9	45.1	44.7	50.9	+
Finland's economic situation in 12 months' time	4.5	21.7	-27.1	-14.4	21.7	21.2	++
Finland's unemployment situation in 12 months' time	1.5	27.6	-51.1	-49.4	-18.7	-19.2	-
Others:
Inflation in 12 months' time, per cent	2.1	4.6	0.7	1.8	1.9	1.9
Own threat of unemployment at present	0.5	7.6	-18.8	-14.6	-9.4	-5.9	-
Financial situation of household at present	26.9	35.1	14.7	30.9	30.7	33.2	+
Favourable time for buying durable goods	20.9	41.8	-14.2	28.6	38.2	37.7	++
Favourable time for saving	10.8	36.8	-19.6	6.7	8.6	10.4	+/-
Favourable time for raising a loan	18.2	42.0	-47.1	2.3	23.2	21.4	+/-
1) 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. 2) ++ 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 February, 56 per cent of consumers believed that Finland's economic situation would improve in the coming twelve months, while 14 per cent of them thought that the country's economy would deteriorate. One year ago, the corresponding proportions were pessimistic 26 and 46 per cent. In all, 29 per cent of consumers believed in February that their own economy would improve and only 10 per cent of them feared it would worsen over the year. Twelve months ago the corresponding proportions were 21 and 15 per cent.

Altogether 18 per cent of consumers thought in February that unemployment would decrease over the year, while 50 per cent of them believed it would increase. Twelve months earlier the respective proportions were even gloomier at 7 and 80 per cent. Just 12 per cent of employed persons believed in February that their personal threat of unemployment had lessened over the past few months, whereas 22 per cent thought it had grown. One year ago the same proportions were 7 and 28 per cent. In February, 44 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 February that consumer prices would go up by 1.9 per cent over the next 12 months. The long-term predicted average inflation rate is 2.1 per cent.

Saving was considered worthwhile by 58 per cent of consumers in February. Sixty-eight per cent of households had been able to lay aside some money and as many as 81 per cent believed they would be able to do so during the next 12 months.

In February 66 per cent of consumers regarded the time good for raising a loan. Twelve months ago the respective proportion was 51 per cent. In February 14 per cent of households were planning to take out a loan within one year.

In February, 58 per cent of consumers thought the time was favourable for buying durable goods. Consumption intentions were mostly moderate, but many households had plans to spend money on, for instance, travel and home repairs during the next six months. Sixteen per cent of households were fairly or very certain to buy a car and seven per cent a dwelling during the next 12 months. Last year in February the corresponding proportions were 15 and 9 per cent.

Consumer confidence indicator (CCI) 10/1995-2/2010

Consumers' expectations concerning their own and Finland's economy in 12 months' time 10/1995-2/2010

Deviation of CCI from country average in EU member states, January 2010¹⁾

¹⁾ Calculated from seasonally adjusted series. Average: 10/1995-. Data for Ireland missing.
Source: European Commission, DG ECFIN, Business and Consumer Survey Results, January 2010
http://ec.europa.eu/economy_finance/db_indicators/surveys/index_en.htm

Source: Consumer Survey 2010, February. Statistics Finland

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

Director in charge: Ari Tyrkkö

Consumer Confidence 2010, February (pdf 371.7 kB)

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Last updated 25.2.2010