Published: 27 October 2020

Consumer confidence continued to erode in October

The consumer confidence indicator (CCI) stood at -6.9 in October, having been -5.9 in September and -5.1 in August. In last year’s October the CCI received the value -6.6. The long-term average for the CCI is -1.8. The data are based on Statistics Finland’s Consumer Confidence Survey, to which 1,181 persons resident in Finland responded between 1 and 19 October.

Consumer confidence indicator (CCI)

Consumer confidence indicator (CCI)

Of the four components of the CCI, views concerning the present state of consumer’s own economy and also on spending money on durable goods within one year improved slightly in October from September. Consumers' expectations concerning their own economy in 12 months remained more or less unchanged, while their expectations concerning Finland's economy in the near future still weakened clearly. Compared with the corresponding period last year, the components of the CCI turned slightly for the worse in October apart from intentions to spend money.

In October, consumers' views on Finland's economic development were gloomy. Expectations concerning one’s own economy in the near future were subdued but estimates of its present state were already fairly bright. Consumers had slightly more intentions of spending money on durable goods than average in October.

Consumers' expectations concerning their own and Finland's economy in 12 months' time

Consumers' expectations concerning their own and Finland's economy in 12 months' time

Consumers’ expectations concerning the development of the general unemployment situation dropped to an even gloomier level in October. There was also more personal threat of unemployment or lay-off experienced by employed consumers, that is, wage and salary earners and self-employed persons. Consumers' estimates of the growth rate of consumer prices in the coming months rose slightly in October.

In October, consumers considered their own financial situation to be still excellent. The time was again regarded as fairly favourable for saving but poor for buying durable goods and especially for raising a loan. However, very many were still going to take out a loan in October. Consumers also had plenty plans of buying a dwelling. In addition, very many consumers were considering renovating their dwelling and buying a car.

Consumer confidence by major region and population group

In October, consumers' confidence in the economy was strongest in Greater Helsinki (CCI -2.3) and weakest elsewhere in Southern Finland (-10.4). Of population groups, students were most optimistic (-1.4). Pensioners had the most pessimistic views concerning economic development (-13.7). The CCI received the value -6.3 among self-employed persons in October.

Consumer confidence usually decreases with the person’s age, and correspondingly the confidence typically increases as income grows. Men are likely to have better confidence in the economy than women. More detailed information is available in the Database tables .

EU results

The (seasonally adjusted) survey results concerning economic expectations for all EU countries are released monthly on the European Commission website: Press releases .

Concepts

The balance figures are obtained by deducting the weighted proportion of negative answers from that of positive answers. The consumer confidence indicator (CCI/A1) is the average of the balance figures for the CCI components. The components of the CCI are: consumer's own economy now (B1), consumer's own economy in 12 months (B2), Finland's economy in 12 months (B4) and consumer's spending money on major purchases in the next 12 months compared to the past 12 months (E1). The balance figures and the confidence indicator can range between -100 and +100 – the higher (positive) balance figure, the brighter the view on the economy.


Source: Consumer Confidence 2020, October. Statistics Finland

Inquiries: Pertti Kangassalo 029 551 3598, Tuomas Parikka 029 551 3276, consumer.confidence@stat.fi

Head of Department in charge: Hannele Orjala

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Updated 27.10.2020

Referencing instructions:

Official Statistics of Finland (OSF): Consumer Confidence [e-publication].
ISSN=2669-8889. October 2020. Helsinki: Statistics Finland [referred: 29.11.2020].
Access method: http://www.stat.fi/til/kbar/2020/10/kbar_2020_10_2020-10-27_tie_001_en.html