10 January 2002
Inquiries: Mr Pertti Kangassalo +358 9 1734
3598, pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumers' confidence in the economy strengthened in December
Consumers' estimates on the economy weakened during last year. However, the consumer confidence indicator rose in December to 6.9 from November's 3.5. Views on Finland's economy and the development of unemployment improved in December. In addition, consumers still assessed their own economy and saving possibilities as good. The time was considered favourable for taking out a loan and there were still a great number of consumption intentions. The data are based on Statistics Finland's Consumer Survey, for which 1,635 persons resident in Finland were interviewed between 3 and 19 December.
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Consumer views on economic and financial conditions in Finland in December 2001 |
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December 2001 balance |
November 2001 balance |
December 2000 balance |
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Consumer confidence indicator |
6.9 |
3.5 |
18.6 |
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Own economic situation in 12 months' time |
8.0 |
7.8 |
11.1 |
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Households' saving possibilities in the next 12 months |
36.5 |
36.5 |
33.9 |
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General economic situation in Finland in 12 months' time |
-3.2 |
-10.1 |
8.9 |
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Unemployment in 12 months' time |
13.8 |
20.2 |
-20.3 |
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Price trend over the next 12 months. % |
2.5 |
2.7 |
2.6 |
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Financial situation of households at present |
24.3 |
26.3 |
26.0 |
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Favourable time to make major purchases at present |
11.2 |
12.7 |
9.3 |
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Favourable time to save at present |
15.6 |
18.9 |
12.8 |
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Favourable time to raise a loan at present |
24.3 |
20.7 |
-1.8 |
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The balance figures are obtained by deducting the weighted proportion of negative answers from that of positive answers. The positive balance figure for unemployment means that unemployment is estimated to go up. The consumer confidence indicator is the average of the balance figures for four questions concerning the next 12 months: own and Finland's economy, households' saving possibilities and unemployment (with changed sign). The balance figures and the confidence indicator can range between -100 and 100. |
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In December 24 per cent of consumers expected Finland's economic situation to improve this year while 29 per cent estimated the country's economy to deteriorate further. The corresponding proportions for November were 19 and 38 per cent. In December 25 per cent of consumers believed that their own economic situation would improve. This proportion was 3 percentage points lower than in December 2000. However, only 11 per cent of consumers were concerned that their own economic situation would worsen this year.
Only every tenth employed person feels threatened by unemployment
In December 45 per cent of consumers estimated that unemployment will start to increase this year. The corresponding proportion was 54 per cent in November. Just 11 per cent of employed persons assumed themselves to become unemployed in 2002. Under 25-year-olds, persons with Upper secondary education, workers and those living in Northern and Eastern Finland were most worried about becoming unemployed. Consumers estimated that inflation would be 2.5 per cent in this year's December.
In December 68 per cent of consumers thought the time was favourable for raising a loan. The corresponding proportion was 46 per cent one year earlier. Fifteen per cent of households intended to take out a loan in the next 12 months. In December 62 per cent of consumers considered saving worthwhile and 72 per cent of households believed they would be able to lay aside money in 2002.
In December 42 per cent of consumers thought the time was favourable for buying consumer durables. More than before, that is, 10 per cent of households planned to buy a car in the next six months. Six per cent of households were thinking of buying a dwelling this year. In addition, many were making plans for home improvement or decoration. There were also plenty of travelling intentions in December.
The seasonally adjusted consumer confidence indicator of the EU Member States rose in December to -9 from November's -12, while in Finland it was 7 in December and 6 in November. In December the deviation of the consumer confidence indicator from the average for 1990 to 2000 was 2 in the EU countries and -1 in Finland. In December confidence in the economy was relatively strongest in Italy and weakest in the Netherlands, where the indicator deviations were 11 and -9, respectively.
Source: Consumer Survey 2001, December. Statistics Finland