Consumer confidence remained low in May 2023

Consumer confidence in areas of residence and population groups

In May, consumer confidence in the economy was clearly strongest in Greater Helsinki (CCI -3.5). Confidence was weakest elsewhere in Southern Finland (-13.2). Of population groups, students were notably optimistic (5.4). Pensioners had the gloomiest expectations concerning economic development in May (-16.6). More detailed information is available in the figures and database tables.

Consumers' own and Finland's economy

In May, consumers' expectations concerning their own and Finland's economy in 12 months' time improved clearly from one year back but weakened slightly from April. Expectations were at a subdued level.

Views concerning consumers’ own economy at present weakened especially from the previous year and were very low in May.

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Thirty-four per cent of consumers thought in May that their own economy was weaker than one year ago. Only 21 per cent of consumers regarded their own economy stronger at the time of the survey than one year ago. As many as 68 per cent of consumers thought that Finland’s economy was now worse than one year earlier, and only seven per cent saw it as better.

In May, 24 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 35 per cent of them thought that the country’s economy would deteriorate. In all, 27 per cent of consumers believed in May that their own economy would improve and 18 per cent of them feared it would worsen over the year.

Unemployment and its threat

Consumers’ expectations about the development of the general unemployment situation in Finland improved in May but remained on the long-term average level. Twenty-three per cent of consumers expected that unemployment would decrease over the year and 32 per cent believed it would increase.

Employed consumers (wage and salary earners and self-employed persons) reckoned in May that their personal threat of unemployment or lay-off had stayed almost unchanged. The threat was estimated to be on the same level as the long-term average. Six per cent of employed persons believed that their personal threat of unemployment had lessened and 15 per cent thought the risk had grown. One half or 49 per cent of employed persons felt in May that they were not threatened by unemployment or temporary lay-off at all.

Inflation

In May, consumers' estimates of the inflation at the time of the survey and their expectations concerning the rate of change in prices in one year's time remained unchanged and high.

Consumers estimated in May that consumer prices have risen by 8.2 per cent from May last year and would go up by 4.9 per cent over the next year. Altogether 90 per cent of consumers thought that prices had gone up much or fairly much over the year. Clearly fewer consumers, or 33 per cent, expected prices to rise at least at the same rate in coming months as well.

Financial situation, saving and raising a loan

As in the preceding few months, the time in May was considered very poor for taking out a loan and also for saving. Just eight per cent of consumers regarded the time favourable for taking out a loan and 40 per cent considered saving worthwhile. At the same time, intentions to take out a loan were also very low. In May, 14 per cent of consumers were planning to take out a loan within one year.

In May, consumers considered their own financial situation to be fairly good. It was expected that the saving possibilities would be as per usual in the coming months. Fifty-six per cent of consumers had been able to lay aside some money and 73 per cent believed they would be able to do so during the next 12 months.

Spending and intentions to make large purchases

In May, the time was still regarded very unfavourable for buying durable goods. Only eight per cent of consumers thought the time was favourable for making expensive purchases.

Consumers’ intentions to spend money on durable goods in the next 12 months were still very low in May. Their intentions to make purchases fell especially from one year ago. In May, 10 per cent of consumers planned on increasing and as many as 43 per cent on reducing their spending on durable goods over the next 12 months.

Consumers had clearly fewer plans than usual to buy a car during the next 12 months. Intentions to buy and renovate one's dwelling were also lower than the long-term average.

In May, only 12 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Similarly, 12 per cent of consumers considered buying a dwelling or building a house. Fifteen per cent of consumers were planning to spend money on renovating their dwelling during the next 12 months.

Data set for the statistics

The Consumer Confidence Survey is carried out with a web questionnaire and by telephone interviews. Answers are mainly given by means of answer options (qualitative survey). In May 2023, a total of 975 persons participated in the Survey and the response rate was 44.8 per cent. Of the responses, 81 per cent came from the web questionnaire (of the sample the share was 36%).

EU results

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