12 January, 1999
Inquiries: Mr Pellervo Marja-aho +358 9 1734 3349,
e-mail: pellervo.marja-aho@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumer confidence in economy stronger in December
Finnish consumers' confidence in a positive trend in their own and in the country's economy became stronger in December. Twenty-seven per cent of consumers expected their own economy to improve this year, while only 8 per cent estimated that it would worsen. A total of 80 per cent of consumers believed that the country's economic situation would either remain unchanged or improve further. 15 per cent of consumers expected the country's economy to deteriorate this year. The data are based on Statistics Finland's Consumer Survey, for which 1 580 persons resident in Finland were interviewed between 14 and 21 December.
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| Consumer views on economic and financial conditions in Finland | |||
| December 1997
balance |
November 1998
balance |
December 1998
balance |
|
| Consumer confidence indicator | 14.2 | 10.7 | 13.1 |
| Economic situation of households in 12 months' time | 8.5 | 8.9 | 10.8 |
| General economic situation in 12 months' time | 17.2 | 2.9 | 6.6 |
| Unemployment in 12 months' time | -24.4 | -12.8 | -14.9 |
| Price trend over the next 12 months, % | 1.8 | 1.5 | 1.2 |
| Financial situation of households at present | 21.0 | 22.4 | 25.9 |
| Favourable time to make major purchases at present | 17.3 | 20.4 | 23.4 |
| Favourable time to save at present | -5.5 | 5.5 | 5.1 |
| Favourable time to raise a loan at present | 19.4 | 28.5 | 35.5 |
The balance figures are obtained by deducting the proportion of negative answers from the proportion of positive ones. 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.
The financial situation of households improved in December. 53 per cent of households could lay aside some money and 67 per cent believed they would be able to save money this year. 75 per cent of consumers considered it was a favourable time to raise a loan and 14 per cent intended to do so.
Intentions to purchase entertainment electronics and household appliances continued to grow in December. More consumers than previously were making plans for home furnishing or a holiday in Finland or abroad. 5 per cent of households intended to buy a dwelling this year and 9 per cent were thinking of purchasing a car in the early part of this year. Consumers predicted that the rate of inflation in December 1999 would be 1.2 per cent.
In December, 74 per cent of households had a mobile phone. 37 per cent of households were owners of a PC and 18 per cent had their home PCs connected to the Internet. 71 per cent of households were driving a car of their own or a company car.
In December, the confidence indicator expressing consumers' views on the economy stood at 13.1, which is 2.4 points higher than in November. By international comparison, Finnish consumers' views on the economy are optimistic. In October, the only EU Member States where consumers were more confident about economic development than in Finland were Ireland and the Netherlands. The average confidence indicator of the EU Member States remained negative in October, at -4.
Source: Consumer Survey 1998, December. Statistics Finland