3 June 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 the economy stronger
Finnish consumers' confidence in favourable economic development continued even stronger in May. The consumer confidence indicator stood at 13.9, i.e. highest since last August. Confidence in the country's economy had grown most. In May, 34 per cent of consumers expected the country's economic situation to improve in the next 12 months, and 50 per cent believed it would remain unchanged. Only 10 per cent thought the country's economy would deteriorate. The data are based on Statistics Finland's Consumer Survey, for which 1,570 persons resident in Finland were interviewed between 17 and 24 May.
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| Consumer views on economic and financial conditions in Finland | |||
| May 1998
balance |
April 1999
balance |
May 1999
balance |
|
| Consumer confidence indicator | 15.3 | 12.7 | 13.9 |
| Economic situation of households in 12 months' time | 8.3 | 8.5 | 9.9 |
| General economic situation in 12 months' time | 16.2 | 8.4 | 12.0 |
| Unemployment in 12 months' time | -24.7 | -20.9 | -20.5 |
| Price trend over the next 12 months, % | 1.8 | 1.6 | 1.6 |
| Financial situation of households at present | 19.3 | 20.5 | 20.5 |
| Favourable time to make major purchases at present | 21.2 | 26.6 | 25.0 |
| Favourable time to save at present | -0.1 | -6.4 | -4.2 |
| Favourable time to raise a loan at present | 26.8 | 40.7 | 36.9 |
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 May, every fourth consumer expected that his or her own economy would improve during the next 12 months. Two in three believed their own economy would remain unchanged and fewer than one in ten expected it to worsen. Sixty-three per cent of households thought they would be able to save money in the next 12 months and 47 per cent viewed the time favourable for saving. In May, 73 per cent of consumers thought it was advantageous to raise a loan and 16 per cent of households intended to do so.
The intentions of consumers to make purchases were strong in May. Forty-one per cent of households intended to take a holiday abroad and 10 per cent were thinking of purchasing a car in the next six months. Several consumers were also planning to purchase leisure equipment and make home improvements. Five per cent of households considered buying a dwelling in the next 12 months. As many as 45 per cent of consumers considered it advantageous to purchase consumer durables. Consumers predicted that the rate of inflation in May 2000 would be 1.6 per cent.
In May, almost four in five households had a mobile phone. Two in five households owned a personal computer and one in five househoulds had their home computer connected to the Internet.
Source: Consumer Survey 1999, May. Statistics Finland