4 September 2001
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumers believe unemployment will increase but are still confident about their own economy
Consumers' confidence in the economy is at its weakest since the recession of the 1990s. The consumer confidence indicator was 0.6 in August. Views on Finland's economy and unemployment development have grown more dismal. In contrast, consumers still have strong confidence in their own economy and saving possibilities. Households' financial situation is good, and saving is considered worthwhile. In addition, households still had plenty of spending intentions. The data are based on Statistics Finland's Consumer Survey, for which 1,553 persons resident in Finland were interviewed between 6 and 23 August.
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Consumer views on economic and financial conditions in Finland in August 2001 |
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August 2001 balance |
July 2001 balance |
August 2000 balance |
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Consumer confidence indicator |
0.6 |
3.8 |
11.7 |
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Economic situation of households in 12 months' time |
9.4 |
9.0 |
10.3 |
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Households' saving possibilities in the next 12 months |
38.9 |
34.2 |
26.2 |
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General economic situation in 12 months' time |
-14.0 |
-11.0 |
11.3 |
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Unemployment in 12 months' time |
8.4 |
-5.6 |
-19.1 |
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Price trend over the next 12 months, % |
2.4 |
2.7 |
2.6 |
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Financial situation of households at present |
27.0 |
27.2 |
23.4 |
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Favourable time to make major purchases at present |
11.9 |
16.8 |
8.4 |
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Favourable time to save at present |
18.7 |
15.5 |
7.9 |
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Favourable time to raise a loan at present |
8.5 |
11.7 |
11.8 |
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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 August 41 per cent of consumers estimated that Finland's economic situation would worsen during the next 12 months, while 15 per cent thought it would improve. The corresponding proportions were 37 and 17 per cent in July, and 12 and 35 per cent in August 2000. Only 10 per cent of consumers thought their own economic situation would deteriorate. As many as before, or 26 per cent, were confident that their own economic situation would improve.
In August 39 per cent of consumers believed that unemployment would increase in the next 12 months, whereas 23 per cent of consumers thought so in July and 10 per cent one year ago. Consumers estimated that inflation would be 2.4 per cent in August 2002.
In August 65 per cent of consumers considered saving worthwhile and 56 per cent thought so about taking out a loan. The former proportion was 56 per cent in last year's August. Of households, 73 per cent believed they would be able to lay aside money in the next 12 months, against 64 per cent one year previously. Thirteen per cent of households contemplated raising a loan in the next 12 months.
In August 40 per cent of households considered the time favourable for buying consumer durables. Households were planning to make home improvements and buy entertainment electronics, but only 7 per cent of households intended to buy a digital set-top box in the next six months. Nine per cent of households thought of buying a car. Six per cent contemplated buying a dwelling in the next 12 months.
Source: Consumer Survey 2001, August. Statistics Finland