Home > Statistics > Consumer Confidence > 2010 > December > Consumer confidence in Finland’s economy plunged in December

Published: 27 December 2010

Consumer confidence in Finland’s economy plunged in December

In December, consumers' confidence in the economy fell to about the same level where it was one year ago, and its average level in the long term. The consumer confidence indicator stood at 13.5 in December whereas in November it was 20.8 and in October 20.5. The data are based on Statistics Finland’s Consumer Survey, for which 1,380 people resident in Finland were interviewed between 1 and 16 December.

Consumer confidence indicator

Of the four components of the consumer confidence indicator, expectations concerning Finland’s economy and the development of unemployment weakened sharply in December from the previous month. Views concerning Finland's economy were last weaker than this in spring 2009.

By contrast, consumers’ views about their own economy and saving possibilities remained more or less unchanged in December and bright as concerns saving. In December, consumers regarded the time less favourable than before for raising a loan and especially for purchasing durable goods. Nevertheless, households had plenty of intentions for taking out a loan as well as for buying a dwelling and durable goods.

In December, only 32 per cent of consumers still believed that Finland’s economic situation would improve during the next 12 months, while 26 per cent of them thought that the country’s economy would deteriorate. The corresponding proportions were 47 and 13 per cent in November, and 54 and 15 per cent one year ago. In all, 29 per cent of consumers believed in December that their own economy would improve and 13 per cent feared it would worsen over the year.

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

In December, only 26 per cent of consumers still thought that unemployment would decrease in Finland over the next year, while more consumers, or 35 per cent of them, already believed it would increase. The corresponding proportions were 36 and 25 per cent in November and very gloomy 17 and 54 per cent one year ago.

In December, 16 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 earlier, these proportions were also gloomier at 10 and 24 per cent. In December, 45 per cent of employed persons thought the threat had remained unchanged and 25 per cent felt that they were not threatened by unemployment at all.

Consumers predicted in December that consumer prices would go up by 3.0 per cent over the next 12 months. In December last year, the predicted inflation rate was 1.9 per cent, and its long-term average is 2.1 per cent.

This December, 64 per cent of consumers considered the time favourable for saving. One year earlier, 57 per cent of them thought so. Sixty-nine per cent of households had been able to lay aside some money and as many as 81 per cent of them believed they would be able to do so during the next 12 months.

In December, 65 per cent of consumers regarded the time favourable for raising a loan. Twelve months ago the respective proportion was 70 per cent. In December, a considerable number, or 16 per cent, of households were planning to take out a loan within one year.

Only 45 per cent of consumers thought in December that the time was favourable for making major purchases. Twelve months earlier, 60 per cent of consumers thought so. Consumption intentions were, nevertheless, plentiful in December and many households planned to spend money on, e.g. travel, home furnishings, or purchases of home technology or hobby equipment during the next six months. Sixteen per cent of households were fairly or very certain to buy a car and 10 per cent a dwelling during the next 12 months. In last year’s December the corresponding proportions were 16 and 7 per cent.

Consumers' views of the economy

	Average 10/1995-	Max. 10/1995-	Min. 10/1995-	12/2009	11/2010	12/2010	Outlook
A1 Consumer confidence indicator, CCI = (B2+B4+B7+D2)/4	13,2	22,9	-6,5	14,4	20,8	13,5	+/-
B2 Own economy in 12 months' time (balance)	9,1	14,1	2,3	8,9	8,9	9,3	+/-
D2 Household's saving possibilities in the next 12 months (balance)	37,2	52,0	10,9	50,7	51,7	48,8	+
B4 Finland's economy in 12 months' time (balance)	5,3	25,3	-27,1	19,8	17,2	1,7	-
B7 Unemployment in Finland in 12 months' time (balance)	1,4	27,6	-51,1	-21,8	5,3	-5,8	-
B6 Inflation in 12 months' time (per cent)	2,1	4,6	0,6	1,9	2,8	3,0
C1 Favourability of time for buying durable goods (balance)	21,3	41,8	-14,2	39,8	24,6	17,9	-
C2 Favourability of time for saving (balance)	11,1	36,8	-19,6	10,4	21,0	17,7	+
C3 Favourability of time for raising a loan (balance)	18,5	42,0	-47,1	28,5	23,4	19,6	+/-

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, December. Statistics Finland

Inquiries: Pertti Kangassalo (09) 1734 3598, Pellervo Marja-aho (09) 1734 3349, kuluttaja.barometri@stat.fi

Director in charge: Ari Tyrkkö

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Reviews

• 1. Overview of the past (27.12.2010)
• 2. Method of the Consumer Survey (27.12.2010)

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Appendix tables

• Consumers' views and intentions (27.12.2010)

Figures

• Appendix figure 1. Consumer confidence indicator (CCI) (27.12.2010)
• Appendix figure 2. Micro and macro indicators (27.12.2010)
• Appendix figure 3. Own economy (27.12.2010)
• Appendix figure 4. Finland's economy (27.12.2010)
• Appendix figure 5. Inflation (27.12.2010)
• Appendix figure 6. Unemployment (27.12.2010)
• Appendix figure 7. Favourability of time for (27.12.2010)
• Appendix figure 8. Household's financial situation (27.12.2010)
• Appendix figure 9. Intentions to raise a loan, next 12 months (27.12.2010)
• Appendix figure10. Spending on durable goods, next 12 months vs last 12 months (27.12.2010)
• Appendix figure 11. Intentions to buy, next 12 months (27.12.2010)

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Updated 27.12.2010