3 April 2001
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumers' views on Finnish economy grew gloomier in March - confidence in own economy remains strong
Finnish consumers' confidence in good economic development has weakened. The consumer confidence indicator stood at 6.6 in March, having still been 12.7 in January. The drop in the indicator was caused by consumers' gloomier views on the Finnish economy. Consumers' confidence in their own economy remained strong in March. The data are based on Statistics Finland's Consumer Survey, for which 1,620 persons resident in Finland were interviewed between 5 and 21 March.
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Consumer views on economic and financial conditions in Finland in March 2001 |
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March 2001 balance |
February 2001 balance |
March 2000 balance |
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Consumer confidence indicator |
6.6 |
10.1 |
14.7 |
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Economic situation of households in 12 months' time |
11.2 |
10.7 |
11.1 |
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Households' saving possibilities in the next 12 months |
39.7 |
35.6 |
33.6 |
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General economic situation in 12 months' time |
-4.9 |
2.8 |
13.2 |
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Unemployment in 12 months' time |
-5.5 |
-16.0 |
-22.2 |
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Price trend over the next 12 months, % |
3.0 |
2.8 |
2.8 |
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Financial situation of households at present |
27.4 |
25.1 |
25.6 |
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Favourable time to make major purchases at present |
14.1 |
13.9 |
18.1 |
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Favourable time to save at present |
14.4 |
12.1 |
11.9 |
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Favourable time to raise a loan at present |
7.5 |
8.3 |
18.8 |
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The balance figures are obtained by deducting the weighted proportion of negative answers from that of positive answers. The negative balance figure for unemployment means that unemployment is estimated to go down. The consumer confidence indicator is the average of the balance figures for the following questions: Finland's past and future economic development, past and future economic development of the respondent's own household, and whether it was a favourable time to make major purchases at present. The balance figures and the confidence indicator can range between -100 and 100. |
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In March, 22 per cent of consumers believed that Finland's economic situation would improve further in the next 12 months, while 31 per cent believed it would worsen. This is the first time since 1993 when a larger proportion of consumers believed the country's economic situation would worsen rather than improve. As many as before, or 29 per cent of consumers, were confident that their own economic situation would improve. Only 9 per cent believed their own economic situation would worsen.
In March, 63 per cent of consumers considered saving money worthwhile, while 43 per cent viewed the time favourable for making major purchases and 56 per cent thought the time favourable for raising a loan. Households' financial situation continued to improve and 73 per cent of them believed they would be able to lay aside some money in the next 12 months while 15 per cent contemplated taking out a loan.
The strongest of the many consumption intentions were those on travelling and home repairs. Eight per cent of households considered buying a car in the next six months, but the proportion of those firmly intent on doing so went down. Good 6 per cent of households thought of buying a dwelling in the next 12 months.
The proportion of consumers who believed that unemployment would decline further in the next 12 months fell to 36 per cent in March, whereas in January approximately one half of consumers still thought so. Consumers estimated that inflation would be 3 per cent exactly in March 2002.
Source: Consumer Survey 2001, March. Statistics Finland