1 August 2001
Inquiries: Mr Pertti Kangassalo +358 9 1734
3589, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumers' views on Finnish economy grew gloomier in July
The consumer confidence indicator, expressing consumers' views on the economy, sank to 3.8 in July, i.e. the lowest since 1993. Consumers' views on Finland's economy grew distinctly gloomier. This applied to estimates concerning economic development over both the past and the coming 12 months. However, consumers continue to be confident about their own economy and saving possibilities. Consumers also thought in July that the time was favourable for making major purchases and their consumption intentions were strong. The data are based on Statistics Finland's Consumer Survey, for which 1,520 persons resident in Finland were interviewed between 2 and 20 July.
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Consumer views on economic and financial conditions in Finland in July 2001 |
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July 2001 balance |
June 2001 balance |
July 2000 balance |
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Consumer confidence indicator |
3.8 |
5.6 |
14.5 |
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Economic situation of households in 12 months' time |
9.0 |
9.4 |
9.9 |
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Households' saving possibilities in the next 12 months |
34.2 |
34.5 |
32.7 |
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General economic situation in 12 months' time |
-11.0 |
-3.9 |
12.1 |
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Unemployment in 12 months' time |
-5.6 |
-6.3 |
-21.0 |
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Price trend over the next 12 months, % |
2.7 |
2.8 |
2.8 |
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Financial situation of households at present |
27.2 |
25.4 |
26.7 |
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Favourable time to make major purchases at present |
16.8 |
9.5 |
20.0 |
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Favourable time to save at present |
15.5 |
16.4 |
5.9 |
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Favourable time to raise a loan at present |
11.7 |
11.3 |
10.5 |
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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 July, 37 per cent of consumers believed that Finland's economic situation would worsen in the next 12 months, while 17 per cent thought it would improve. The corresponding proportions in June this year were 28 and 20 per cent while in July 2000 they were 11 and 35 per cent. Only 10 per cent of consumers believed their own economic situation would worsen while 26 per cent, or roughly as many as before, were confident that their own economic situation would improve.
In July, 35 per cent of consumers believed that unemployment would decline further in the next 12 months, whereas one half of the respondents thought so in July 2000. Consumers estimated that inflation would be 2.7 per cent in July 2002.
In July, 43 per cent of consumers thought the time favourable for making major purchases. The corresponding proportions for June 2001 and July 2000 were 40 and 46 per cent, respectively. Households had plenty of spending intentions on home electronics and furnishings, and on travel. Nine per cent of households contemplated purchasing a car in the next six months and 5 per cent thought of buying a dwelling in the next 12 months.
Sixty-three per cent of consumers considered saving worthwhile in July, while 59 per cent thought the time was favourable for raising a loan. Households' financial situation was good and 71 per cent of them believed they would be able to lay aside some money in the next 12 months. Fourteen per cent of households intended to take out a loan within the next 12 months.
Source: Consumer Survey 2001, July. Statistics Finland