Home > Statistics > Consumer Confidence > 2007 > April > Consumers' belief in the decrease of unemployment restored

Published: 27 April 2007

Consumers' belief in the decrease of unemployment restored

In April consumers' confidence in the economy returned to the high level of the turn of the year. The consumer confidence indicator stood at 17.9 in April, whereas it was 16.5 in March and 9.4 twelve months ago. Confidence in the economy was also stronger than the long-term average. The data are based on Statistics Finland's Consumer Survey for which 1,524 persons resident in Finland were interviewed between 2 and 19 April.

Of the four components of the consumer confidence indicator, expectations weakened slightly in April from the previous month only with regard to households' saving possibilities. The consumers' views of saving possibilities were, however, still very bright, as were their views of their own economy in general. On the other hand, consumers' expectations of Finland's unemployment development improved drastically during the month, especially when compared to the year before, and were the most positive since February 2001. In April, consumers did not regard the time as favourable as before for raising a loan.

Consumer views on the economic and financial conditions in Finland in April 2007

	April 2007 balance figure	March 2007 balance figure	April 2006 balance figure	Average 10/95-4/07
Consumer confidence indicator (CCI)	17.9	16.5	9.4	13.7
CCI components:
Own economic situation in 12 months' time	12.5	12.2	11.0	9.4
Household's saving possibilities in the next 12 months	44.0	50.4	41.6	33.8
General economic situation in Finland in 12 months' time	2.7	1.3	-1.8	6.4
Unemployment in Finland in 12 months' time	12.6	2.0	-13.3	5.3
Others:
Inflation in 12 months' time. %	2.4	2.3	2.4	2.0
Personal threat of unemployment at present	5.6	5.6	0.9	..
Financial situation of household at present	31.8	32.6	29.4	25.6
Favourable time to make major purchases at present	22.0	23.1	24.1	21.1
Favourable time to save at present	30.8	31.0	21.2	7.8
Favourable time to raise a loan at present	3.7	8.4	26.4	22.6
The balance figures are obtained by deducting the weighted proportion of negative answers from that of positive answers. The consumer confidence indicator is the average of the balance figures for four questions concerning the next 12 months: own and Finland's economy, unemployment and household's saving possibilities. The balance figures and the confidence indicator can range between -100 and 100. A positive balance figure denotes an optimistic and a negative balance figure a pessimistic view on the economy.

In April, 24 per cent of consumers believed that Finland's economic situation would improve in the coming twelve months, while 19 per cent of them thought that the country's economy would deteriorate. In all, 32 per cent of consumers believed in April that their own economy would improve and only 9 per cent of them feared it would worsen over the year.

Altogether 46 per cent of consumers thought in April that unemployment would decrease over the year, and 21 per cent of them believed it would increase. The corresponding proportions were 37 and 31 per cent in March and gloomy 26 and 47 per cent one year ago. Sixteen per cent of employed persons reckoned in April that their personal threat of unemployment had lessened over the past few months while 11 per cent thought it had grown.

Consumers predicted in April that consumer prices would go up by 2.4 per cent over the next 12 months. The long-term predicted average inflation rate is 2.0 per cent.

As many as 75 per cent of consumers considered saving worthwhile in April. Twelve months earlier the corresponding percentage was 67. Sixty-six per cent of households had been able to lay aside some money and 77 per cent believed they would be able to do so during the next 12 months. Households mostly save for a rainy day or for a holiday trip and the second most popular investment targets, after bank accounts, were various kinds of funds.

In April, 52 per cent of consumers regarded the time good for raising a loan. One month ago the respective proportion was 57 per cent and one year ago 72 per cent. However, 15 per cent of households, which is roughly as many as one year ago, were planning to take out a loan within one year.

In April, 45 per cent of consumers thought the time was favourable for buying durable goods. Very many households intended to spend money on, for example, hobby equipment or travelling. Thirty-eight per cent of households considered purchasing a digital set-top box by autumn. Major purchases were attractive as well; in the next twelve months, 19 per cent of households were fairly or very certain to buy a car and 8 per cent a dwelling.

Consumer confidence indicator 10/1995-4/2007

Consumers' expectations concerning their own and Finland's economy in 12 months' time 10/1995-4/2007

Consumer confidence indicator in EU Member States, March 2007
Deviation of indicator from country average 10/1995 - 3/2007*

*Calculated from seasonally adjusted series
Source: European Commission, DG ECFIN, Business and Consumer Survey Results, March 2007
http://europa.eu.int/comm/economy_finance/indicators/businessandconsumersurveys_en.htm

Source: Consumer Survey 2007, April. Statistics Finland

Inquiries: Mr Pertti Kangassalo +358 9 1734 3598, kuluttaja.barometri@stat.fi

Director in charge: Mr Ari Tyrkkö

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Last updated 27.4.2007