6 May 1999
Inquiries: Mr Pertti Kangassalo +358 9 1734 3598,
e-mail: e-mail:
pertti.kangassalo@stat.fi
Director in charge: Mr Markku Suur-Kujala
Consumer confidence in the economy strong
Finnish consumers continued to believe in favourable economic development in April. The consumer confidence indicator stood at 12.7 in April, i.e. higher than in February to March. Self-employed and unemployed persons had most and agricultural entrepreneurs least confidence in their own economy. Belief in the country's economic growth was strongest among wage and salary earners and weakest among self-employed persons. The data are based on Statistics Finland's Consumer Survey, for which 1,660 persons resident in Finland were interviewed between 19 and 26 April.
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| Consumer views on economic and financial conditions in Finland | |||
| April 1998
balance |
March 1999
balance |
April 1999
balance |
|
| Consumer confidence indicator | 14.9 | 11.7 | 12.7 |
| Economic situation of households in 12 months' time | 8.5 | 8.4 | 8.5 |
| General economic situation in 12 months' time | 16.3 | 7.0 | 8.4 |
| Unemployment in 12 months' time | -26.1 | -17.7 | -20.9 |
| Price trend over the next 12 months, % | 2.0 | 1.3 | 1.6 |
| Financial situation of households at present | 21.2 | 22.3 | 20.5 |
| Favourable time to make major purchases at present | 21.3 | 24.0 | 26.6 |
| Favourable time to save at present | -1.9 | -5.5 | -6.4 |
| Favourable time to raise a loan at present | 24.5 | 36.1 | 40.7 |
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.
In April, 82 per cent of consumers expected the country's economy to remain unchanged or improve during the next 12 months. Just 13 per cent estimated it would worsen. For the first time since last August, more than one half of consumers believed unemployment would decline.
As many as 76 per cent of consumers considered the time favourable for raising a loan and 16 per cent of households intended to do so within the next 12 months. In contrast, fewer than before, i.e. 44 per cent of consumers, viewed saving worthwhile. Every fourth consumer believed their own economy would improve in the next 12 months and only every tenth thought it would deteriorate.
The intentions of consumers to make purchases continued to grow in April. More than previously, or 7 per cent of households, considered buying a dwelling in the next 12 months. Intentions of making home repairs and acquiring new furnishings were also strong. As many as 43 per cent of households were planning to take a holiday abroad and 9 per cent were thinking of purchasing a car in the next six months. Almost one half of consumers considered it advantageous to purchase consumer durables. Consumers predicted that the rate of inflation in April 2000 would be 1.6 per cent.
By international comparison, Finnish consumers' views on the economy are optimistic. In March, the only EU Member States where consumers were more confident about economic development than in Finland were Ireland (16) and the Netherlands (15). The average confidence indicator of the EU Member States stood at -1 in March.
Source: Consumer Survey 1999, April. Statistics Finland