11 March, 1999
Inquiries: Mr Pertti Kangassalo +358 9 1734 3598,
e-mail: pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumer confidence in economic growth weaker -
views on own economy still positive
Finnish consumers' confidence in the continuation of fast economic growth weakened in February. Twenty-five per cent of consumers expected that the country's economic situation would improve during the next 12 months, and 20 per cent believed it would deteriorate. In January, the corresponding figures stood at 31 and 16 per cent. The proportion of those believing that unemployment would decline dropped from 45 to 39 per cent in February. The consumer confidence indicator expressing consumers' views on the economy was 10.3 in February, i.e. 2.7 points lower than in January. The data are based on Statistics Finland's Consumer Survey, for which 1,650 persons resident in Finland were interviewed between 22 and 26 February.
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| Consumer views on economic and financial conditions in Finland | |||
| February 1998
balance |
January 1999
balance |
February 1999
balance |
|
| Consumer confidence indicator | 13.3 | 13.0 | 10.3 |
| Economic situation of households in 12 months' time | 7.5 | 9.3 | 9.9 |
| General economic situation in 12 months' time | 14.5 | 7.6 | 1.8 |
| Unemployment in 12 months' time | -24.9 | -14.9 | -10.1 |
| Price trend over the next 12 months, % | 2.1 | 1.3 | 1.4 |
| Financial situation of households at present | 20.3 | 22.6 | 22.8 |
| Favourable time to make major purchases at present | 19.5 | 25.2 | 24.5 |
| Favourable time to save at present | -1.5 | 6.7 | 5.4 |
| Favourable time to raise a loan at present | 19.3 | 33.0 | 34.1 |
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.
Consumers' confidence in their own economy, however, continued strong. In February, 26 per cent of consumers believed that their own economy would improve during the next 12 months, while only 8 per cent estimated that it would worsen. Fifty-one per cent of households were able to lay aside some money and 67 per cent believed they would be able to save money in the next 12 months. Seventy-three per cent of consumers considered the time favourable for raising a loan and 16 per cent of households intended to do so.
Forty-four per cent of consumers viewed buying consumer durables favourably in February. Six per cent of households considered buying a dwelling in the next 12 months and 8 per cent were thinking of purchasing a car in the next six months. More households than ever before, i.e. 39 per cent, were planning to take a holiday abroad in the next six months. Consumers predicted that the rate of inflation in February 2000 would be 1.4 per cent.
By international comparison, Finnish consumers' views on the economy are optimistic. In February, 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 rose to zero in February.
Source: Consumer Survey 1999, February. Statistics
Finland
(All figures presented in this press release
have been weighted against the total population of the survey.
Therefore, the data for the reference months differ from the
unweighted figures in the previous press releases. The differences
are, however, mainly very small. Weighting improves the statistical
accuracy of the data.)