Home > Statistics > Consumer Confidence > 2007 > June > Consumers' views brighter than for seven years

Published: 27 June 2007

Consumers' views brighter than for seven years

Consumers' confidence in the economy gained strength in June. The consumer confidence indicator stood at 20.4 in June, having been 17.7 in May and 16.6 twelve months earlier. At the same time, consumers' confidence in the economy was stronger than the long-term average and strongest since February 2000, when the consumer confidence indicator reached its record high of 21.8. The data are based on Statistics Finland's Consumer Survey, for which 1,521 people resident in Finland were interviewed between 1 and 18 June.

Of the four components of the consumer confidence indicator, expectations on own economy and saving possibilities, and especially on the development of unemployment in Finland improved in June from the previous month. Views concerning Finland's economy remained essentially unchanged and still cautious. Consumers thought that their own financial situation and saving possibilities were excellent in June. By contrast, they continued to regard the time less and less favourable for raising a loan and purchasing durable goods.

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

	June 2007 balance figure	May 2007 balance figure	June 2006 balance figure	Average 10/95-6/07
Consumer confidence indicator (CCI)	20.4	17.7	16.6	13.8
CCI components:
Own economic situation in 12 months' time	12.2	10.7	12.4	9.5
Households' saving possibilities in the next 12 months	51.8	47.7	48.3	34.0
Finland's economic situation in 12 months time	3.6	3.3	2.3	6.3
Finland's unemployment situation in 12 months time	14.1	9.2	3.4	5.4
Others:
Inflation in 12 months' time, per cent	2.5	2.4	2.6	2.0
Own threat of unemployment at present	5.1	6.6	3.7	..
Financial situation of household at present	34.0	30.3	29.8	25.7
Favourable time to make major purchases at present	14.6	18.7	22.6	21.0
Favourable time to save at present	33.1	33.3	23.5	8.2
Favourable time to raise a loan at present	3.6	5.6	23.1	22.4
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 June, 27 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, 31 per cent of consumers believed in June that their own economy would improve and only 10 per cent of them feared it would worsen over the coming year.

Altogether 48 per cent of consumers thought in June that unemployment would decrease over the year, while 20 per cent of them believed it would increase. The corresponding proportions were 43 and 24 per cent in May and 37 and 29 per cent one year ago. Fourteen per cent of employed persons reckoned in June that their personal threat of unemployment had lessened over the past few months while 9 per cent thought it had grown.

Consumers predicted in June that consumer prices would go up by 2.5 per cent over the next 12 months. The long-term predicted average inflation rate is 2.0 per cent.

Saving was considered worthwhile by 77 per cent of consumers in June. Twelve months earlier the corresponding percentage was 69. Households' financial situation was excellent, for 69 per cent of them had been able to lay aside some money and 82 per cent believed they would be able to do so in the next twelve months.

In June, only 53 per cent of consumers regarded the time good for raising a loan. Twelve months earlier the respective proportion was 68 per cent. Nevertheless, 14 per cent of households were planning to raise a loan within one year.

In June, 42 per cent of consumers thought the time was favourable for buying durable goods. Many households had intentions to spend money on, for instance, entertainment electronics or hobby equipment, and travelling. Thirty-five per cent of households intended to buy a digital set-top box during the summer or autumn. Even major purchases were attractive, for 18 per cent of households were fairly or very certain to buy a car and 8 per cent a dwelling in the next twelve months.

Consumer confidence indicator 10/1995-6/2007

Consumers' expectations concerning their own and Finland's economy in 12 months' time
10/1995-6/2007

Consumer confidence indicator in EU member states, May 2007
Deviation of indicator from country average 10/1995 - 5/2007*

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

Source: Consumer Survey 2007, June. 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 27.6.2007