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Published: 27 May 2010

Consumer confidence in Finland's economy weakened in May

Consumer confidence was still clearly stronger in May than one year ago and also better than the long-term average. In May the consumer confidence indicator stood at 15.8, while in April it was 17.9 and in March 15.4. The data are based on Statistics Finland's Consumer Survey, for which 1,317 people resident in Finland were interviewed between 3 and 19 May.

Of the four components of the consumer confidence indicator, expectations on the development of unemployment and household's saving possibilities improved in May compared with the previous month. Consumers' view of their own economy generally remained unchanged. However, last months' very bright outlook on Finland's economy now weakened clearly.

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

	Average 10/95-	Max. 10/95-	Min. 10/95-	May  2009	April 2010	May 2010	Outlook2)
Consumer confidence indicator	13.0	21.8	-6.5	7.2	17.9	15.8	+
CCI components:
Own economic situation in 12 months' time	9.1	14.1	2.3	5.6	10.2	10.3	+/-
Household's saving possibilities in the next 12 months	36.7	52.0	10.9	46.8	45.2	49.3	+
Finland's economic situation in 12 months' time	4.8	24.2	-27.1	9.5	24.2	10.0	+
Finland's unemployment situation in 12 months' time	1.3	27.6	-51.1	-33.2	-7.9	-6.5	+/-
Others:
Inflation in 12 months' time, per cent	2.1	4.6	0.7	1.5	2.3	2.3
Own threat of unemployment at present	0.4	7.6	-18.8	-16.9	0.9	-0.8	+/-
Financial situation of household at present	27.0	35.1	14.7	32.9	30.7	32.0	+
Favourable time for buying durable goods	21.1	41.8	-14.2	34.0	31.9	25.8	+/-
Favourable time for saving	10.8	36.8	-19.6	12.0	12.8	16.5	+/-
Favourable time for raising a loan	18.3	42.0	-47.1	14.4	27.0	22.2	+/-
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 May, 43 per cent of consumers believed that Finland's economic situation would improve in the coming twelve months, while 21 per cent of them thought that the country's economy would deteriorate. In April the respective proportions were 57 and 11 per cent and twelve months ago 44 and 22 per cent. In all, 28 per cent of consumers believed in May 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 22 and 13 per cent.

Altogether 28 per cent of consumers thought in May that unemployment would decrease in Finland over the year, and 38 per cent of them believed it would increase. Twelve months previously, the corresponding proportions were gloomy 13 and 67 per cent.

In May 15 per cent of employed persons believed that their personal threat of unemployment had lessened over the past few months, whereas 18 per cent thought it had grown. One year previously the corresponding proportions were eight and 32 per cent. In May, 44 per cent of employed persons thought the threat of unemployment had remained unchanged, while 24 per cent felt that they were not threatened by unemployment at all.

Consumers predicted in May that consumer prices would go up by 2.3 per cent over the next 12 months. The long-term predicted average inflation rate is 2.1 per cent.

A total of 63 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, 67 per cent of consumers regarded the time good for raising a loan. Twelve months ago the respective proportion was 60 per cent. In May 13 per cent of households were planning to raise a loan within one year.

In May 51 per cent of consumers thought the time was favourable for buying durable goods. Twelve months earlier the corresponding percentage was 58. Consumption intentions were mostly moderate in May, but many households had plans to spend money on, for instance, travel, dwelling repairs and purchasing of entertainment electronics during the next six months. Seventeen per cent of households were fairly or very certain to buy a car and slightly fewer households than before, that is, seven per cent, to buy a dwelling during the next 12 months. In last year's May the corresponding proportions were 17 and 10 per cent.

Consumer confidence indicator (CCI) 10/1995-5/2010

Consumers' expectations concerning their own and Finland's economy in 12 months' time 10/1995-5/2010

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

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

Source: Consumer Survey 2010, May. Statistics Finland

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

Director in charge: Ari Tyrkkö

Consumer Confidence 2010, May (pdf 204.0 kB)

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Last updated 27.5.2010