3 July 2001
Inquiries: Mr Pellervo Marja-aho +358 9 1734
3349, pellervo.marja-aho@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumers' confidence in the economy weaker than twelve months ago
The consumer confidence indicator, expressing consumers' views on the economy, stood at 5.6 in June whereas in June 2000 it was 13.1. Consumers' views of Finland's economy and of whether making major purchases would be worthwhile have grown gloomier. However, consumers continue to be confident about their own economy and saving possibilities. Laying money aside and raising a loan are also considered worthwhile. The data are based on Statistics Finland's Consumer Survey, for which 1,568 persons resident in Finland were interviewed between 4 and 21 June.
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Consumer views on economic and financial conditions in Finland in June 2001 |
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June 2001 balance |
May 2001 balance |
June 2000 balance |
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Consumer confidence indicator |
5.6 |
6.8 |
13.1 |
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Economic situation of households in 12 months' time |
9.4 |
10.7 |
10.2 |
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Households' saving possibilities in the next 12 months |
34.5 |
36.2 |
34.0 |
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General economic situation in 12 months' time |
-3.9 |
-2.0 |
12.1 |
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Unemployment in 12 months' time |
-6.3 |
-7.3 |
-18.0 |
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Price trend over the next 12 months, % |
2.8 |
2.9 |
2.7 |
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Financial situation of households at present |
25.4 |
26.5 |
26.2 |
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Favourable time to make major purchases at present |
9.5 |
10.9 |
14.2 |
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Favourable time to save at present |
16.4 |
17.0 |
5.1 |
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Favourable time to raise a loan at present |
11.3 |
12.0 |
10.8 |
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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 June, 20 per cent of consumers believed that Finland's economic situation would improve in the next 12 months, while 28 per cent thought it would deteriorate. The respective proportions in June 2000 were 37 and 12 per cent. Twenty-seven per cent of consumers, or roughly as many as before, were confident that their own economic situation would improve. Only 11 per cent thought their own economy would worsen.
In June, 37 per cent of consumers believed that unemployment would decline further in the next 12 months, whereas 47 per cent of the respondents thought so in June 2000. Consumers estimated that inflation would be 2.8 per cent in June 2002.
In June, 64 per cent of consumers considered saving worthwhile. Fifty-nine per cent thought the time was favourable for raising a loan, while 40 per cent believed the time was favourable for making major purchases. Seventy per cent of households believed they would be able to lay aside some money in the next 12 months. Saving by investing in securities has grown clearly less popular from last year. Fifteen per cent of households intended to take out a loan for diverse purposes within the next 12 months.
Although consumers viewed the time less favourable that before for making purchases, they still had plenty of consumption intentions in June. Dwelling repairs, furnishings, and entertainment electronics featured especially among their spending plans. Eight per cent of households contemplated buying a car in the next six months. Home purchasing intentions strengthened from the early part of the year and in June 7 per cent of households thought of buying a dwelling in the next 12 months.
Source: Consumer Survey 2001, June. Statistics Finland