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1. Examination of response distributions

Consumers' own and Finland's economy

As many as 87 per cent of consumers estimated in May that Finland's economy was now worse than a year ago and only three per cent of consumers felt that it was better. The respective proportions in April were 82 and 4 per cent. Twenty-one per cent of consumers thought in May that their own economy is at the moment worse than one year ago. Slightly more consumers or 24 per cent considered their own economy stronger than one year ago. One month earlier, the respective proportions were 21 and 20 per cent.

In May, 26 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 57 per cent of them thought that the country’s economy would deteriorate. The respective proportions were 27 and 61 per cent in April.

In all, 27 per cent of consumers believed in May that their own economy would improve and 17 per cent of them feared it would worsen over the year. In April the corresponding proportions were more pessimistic: 24 and 21 per cent.

Unemployment and inflation

Altogether 16 per cent of consumers thought in May that general unemployment would decrease over the year, while 72 per cent of them believed it would increase. The corresponding proportions were even gloomier in April: 10 and 82 per cent.

In May, 35 per cent of employed persons felt that they were not threatened by unemployment at all. Four per cent of employed persons reckoned that their personal threat of unemployment had lessened over the past few months, while 40 per cent thought it had grown. One month ago, these three proportions were 33, 2 and 41 per cent.

Consumers estimated in May that consumer prices would go up by 2.4 per cent over the next 12 months. The predicted long-term average inflation rate is 2.9 per cent.

Saving and taking out a loan

In May, 43 per cent of consumers thought the time was favourable for saving. The proportion was 40 per cent in April. In May, 62 per cent of households had been able to lay aside some money and 76 per cent believed they would be able to do so during the next 12 months.

In May, 37 per cent of consumers regarded the time good for taking out a loan. One month earlier, the corresponding proportion was only 28 per cent. In May still slightly more consumers than usual, or 17 per cent of them, were planning to raise a loan within one year.

Buying of durable goods

Thirty per cent of consumers considered the time favourable for buying durable goods in May. The proportion was only 20 per cent in April. Fourteen per cent of consumers in May planned on increasing and 35 per cent on reducing their spending on durable goods over the next 12 months. In April, these two proportions were clearly weaker: 9 and 46 per cent.

In May, only 13 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. In turn, intentions related to the dwelling – besides taking out a loan – were still on a good level. In May, 15 per cent of consumers considered buying a dwelling. The long-term average proportion is 13 per cent. In May, 20 per cent of consumers were planning to spend money on renovating their dwelling within a year.

Source: Consumer Confidence 2020, May. Statistics Finland

Inquiries: Pertti Kangassalo 029 551 3598, Tuomas Parikka 029 551 3276, consumer.confidence@stat.fi

Director in charge: Jari Tarkoma

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Updated 27.5.2020