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Published: 27 August 2010

Consumer confidence at record level in August

Consumers’ confidence in the economy continued to strengthen further in August. The consumer confidence indicator stood at 21.9 in August, whereas in July it was 19.1 and in June 18.7. Confidence in the economy has been measured as strong as in August only at the beginning of 2000. The data are based on Statistics Finland’s Consumer Survey, for which 1,420 people resident in Finland were interviewed between 2 and 19 August.

Consumer confidence indicator

Of the four components of the consumer confidence indicator, expectations concerning Finland’s economy and development of unemployment and own saving possibilities improved in August from the previous month. In contrast, consumers' view of their own economy in general weakened slightly. Consumers estimated the inflation to accelerate and thought saving ever more worthwhile in August.

In August, 55 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while only 10 per cent of them thought that the country’s economy would deteriorate. Twelve months earlier the respective proportions were 45 and 21 per cent. In all, 27 per cent of consumers believed in August that their own economy would improve and 11 per cent of them feared it would worsen over the year.

Consumers' expectations concerning their own and Finland's economy in 12 months' time

Altogether 39 per cent of consumers thought in August that unemployment would decrease in Finland over the year, while 20 per cent of them believed it would increase. Twelve months previously, the corresponding proportions were gloomy 13 and 66 per cent.

In August, 17 per cent of employed persons believed that their personal threat of unemployment had lessened over the past few months, whereas 14 per cent thought it had grown. Twelve months previously, the corresponding proportions were gloomy 7 and 30 per cent. In August, 48 per cent of employed persons thought the threat had remained unchanged and 21 per cent felt that they were not threatened by unemployment at all.

Consumers predicted in August that consumer prices would go up by 2.4 per cent over the next 12 months. One year ago the predicted inflation rate was 1.5 per cent. Its long-term average is 2.1 per cent.

Altogether 67 per cent of consumers considered saving worthwhile in August. One year previously the corresponding proportion was 58 per cent. 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.

In August, 64 per cent of consumers regarded the time good for raising a loan. In August, 14 per cent of households were planning to take out a loan within one year.

In August, 52 per cent of consumers thought the time was favourable for buying durable goods. Twelve months earlier the corresponding percentage was 57. Consumption intentions were mostly moderate in August, but many households will spend money on, for instance, travel, dwelling repairs and purchasing of hobby equipment during the next six months. Eighteen per cent of households were fairly or very certain to buy a car and eight per cent a dwelling during the next 12 months. In last year’s August the corresponding proportions were 16 and 7 per cent.

Consumers' views of the economy

	Average 10/1995-	Max. 10/1995-	Min. 10/1995-	08/2009	07/2010	08/2010	Outlook
Consumer confidence indicator, CCI = (B2+B4+B7+D2)/4	13,1	21,9	-6,5	8,2	19,1	21,9	++
Own economy in 12 months' time (balance)	9,1	14,1	2,3	6,2	9,2	8,9	+/-
Household's saving possibilities in the next 12 months (balance)	36,9	52,0	10,9	47,3	40,5	47,4	+
Finland's economy in 12 months' time (balance)	5,0	24,2	-27,1	10,8	21,5	22,8	++
Unemployment in Finland in 12 months' time (balance)	1,4	27,6	-51,1	-31,5	5,2	8,5	+/-
Inflation in 12 months' time (per cent)	2,1	4,6	0,6	1,5	2,2	2,4	+/-
Favourability of time for buying durable goods (balance)	21,2	41,8	-14,2	34,2	25,9	29,0	+
Favourability of time for saving (balance)	10,9	36,8	-19,6	11,0	17,2	20,2	+
Favourability of time for raising a loan (balance)	18,4	42,0	-47,1	19,7	23,4	17,9	+/-

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.

Explanations for Outlook column:

++ 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.

The (seasonally adjusted) Consumer Survey results for all EU countries will be later released on the European Commission website: European Commission, DG ECFIN, Business and Consumer Survey Results; http://ec.europa.eu/economy_finance/db_indicators/surveys/index_en.htm

Source: Consumer Survey 2010, August. Statistics Finland

Inquiries: Pertti Kangassalo (09) 1734 3598, kuluttaja.barometri@stat.fi

Director in charge: Ari Tyrkkö

Publication in pdf-format (427.2 kB)

Reviews

• 1. Overview of the past (27.8.2010)
• 2. Method of the Consumer Survey (27.8.2010)

Tables

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Appendix tables

• Appendix table 1. Consumers' views of the economy (27.8.2010)

Figures

• Appendix figure 1. Consumer confidence indicator (CCI) (27.8.2010)
• Appendix figure 2. Micro and macro indicators (27.8.2010)
• Appendix figure 3. Own economy (27.8.2010)
• Appendix figure 4. Finland's economy (27.8.2010)
• Appendix figure 5. Inflation (27.8.2010)
• Appendix figure 6. Unemployment (27.8.2010)
• Appendix figure 7. Favourability of time for (27.8.2010)
• Appendix figure 8. Household's financial situation (27.8.2010)
• Appendix figure 9. Intentions to raise a loan, next 12 months (27.8.2010)
• Appendix figure10. Spending on durable goods, next 12 months vs last 12 months (27.8.2010)
• Appendix figure 11. Intentions to buy, next 12 months (27.8.2010)

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Updated 27.8.2010