Home > Statistics > Consumer Confidence > 2007 > December > Consumers' confidence in the economy unchanged in December

Published: 27 December 2007

Consumers' confidence in the economy unchanged in December

The consumer confidence indicator reflecting the consumers' economic sentiments stood at 14.0 in December, whereas it was 14.5 in November and 17.3 in October. Confidence in the economy was at the level of its long-term average and weaker than one year previously. The data are based on Statistics Finland's Consumer Survey, for which 1,501 people resident in Finland were interviewed between 3 and 17 December.

Of the four components of the consumer confidence indicator, expectations concerning the development of unemployment improved in December from the previous month. The other components deteriorated slightly. Consumers' views concerning their own economy and saving possibilities continued to be bright. By contrast, Finland's economic growth was estimated to slow down in the near future. Consumers predicted in December also that inflation would speed up over the next 12 months.

Consumer views on the economic and financial conditions in Finland in December 2007, balances*

	Average 10/95-	Max. 10/95-	Min. 10/95-	December 2006	November 2007	December 2007	Situation***
Consumer confidence indicator (CCI)	13.9	21.8	3.5	18.2	14.5	14.0	+
CCI components:
Own economic situation in 12 months' time	9.5	14.1	2.3	10.9	12.7	10.4	+
Households' saving possibilities in the next 12 months	34.7	52.0	10.9	49.4	51.8	49.0	++
Finland's economic situation in 12 months time	5.9	21.7	-14.0	4.3	-7.9	-8.7	- -
Finland's unemployment situation in 12 months time	5.7	27.6	-22.7	8.0	1.5	5.3	-
Others:
Inflation in 12 months' time, per cent	2.0	3.4	0.7	2.5	3.3	3.4
Own threat of unemployment at present**	4.2	7.2	0.8	6.1	4.3	4.4	+
Financial situation of household at present	26.0	35.1	14.7	33.0	31.8	33.3	++
Favourable time to make major purchases at present	20.8	37.7	-2.1	20.4	9.5	13.7	-
Favourable time to save at present	9.3	36.8	-19.6	28.7	36.8	35.1	++
Favourable time to raise a loan at present	21.4	42.0	-13.5	17.0	-3.6	-6.5	- -
* 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 the CCI components. 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. ** Own threat of unemployment has only been asked since March 2004. *** ++ Situation is very good, + Situation is good, - Situation is bad, - - Situation is very bad.

In December, 17 per cent of consumers believed that Finland's economic situation will improve during the next 12 months, while 34 per cent of them thought that the country's economy would deteriorate. Twelve months earlier the corresponding proportions were 25 and 17 per cent. In all, 31 per cent of consumers believed in December that their own economy would improve and 13 per cent of them feared it would worsen over the year.

Altogether 38 per cent of consumers thought in December that unemployment would decrease over the year, while 27 per cent of them believed it would increase. The respective proportions in November were 36 and 32 per cent. Fourteen per cent of employed persons reckoned in December that their personal threat of unemployment had lessened over the past few months, while 11 per cent thought it had grown.

Consumers predicted in December that consumer prices would go up by 3.4 per cent over the next 12 months. This was the highest prediction for the period 1995 to 2007. The long-term predicted average inflation rate is 2.0 per cent.

As many as 79 per cent of consumers considered saving worthwhile in December. Twelve months earlier the corresponding percentage was 73. Sixty-six per cent of households had been able to lay aside some money and 80 per cent believed they would be able to do so during the next 12 months.

In December, 43 per cent of consumers regarded the time good for raising a loan. Twelve months before, the respective proportion was 64 per cent. However, as many households as one year previously, or 13 per cent, were planning to take out a loan within one year.

In December, 44 per cent of consumers thought the time was favourable for buying durable goods. The respective proportion was the same one year ago and stood at 40 per cent in November. In December, many households had intentions to spend money on, for instance, travelling during the next six months. Twenty-four per cent of households considered purchasing a digital set-top box. In the next twelve months, 18 per cent of households were fairly or very certain to buy a car and 8 per cent a dwelling.

Consumer confidence indicator (CCI) 10/1995-12/2007

Consumers' micro and macro indicators 10/1995-12/2007*

* Micro indicator is the average of three balances: own economy and household's saving possibilities in 12 months' time,
and household's financial situation at present.
Macro indicator is the average of two balance figures: Finland's economy and unemployment in 12 months' time.

Deviation of CCI from country average in EU member states, November 2007
(average: 10/1995-)*

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

Source: Consumer Survey 2007, December 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 27.12.2007