Home > Statistics > Consumer Confidence > 2008 > March > Consumers' confidence in employment recovered slightly

Published: 27 March 2008

Consumers' confidence in employment recovered slightly

Consumers' confidence in the economy gained some strength in March. The consumer confidence indicator stood at 12.9 in March, having been 10.1 in February. Nevertherless, confidence in the economy continued to be weaker than 12 months earlier and below the long-term average. The data are based on Statistics Finland's Consumer Survey, for which 1,468 people resident in Finland were interviewed between 3 and 17 March.

Of the four components of the consumer confidence indicator, expectations concerning the development of unemployment improved slightly in March from the previous month's downswing. Views about the other components remained more or less unchanged. Consumers' expectations concerning their own economy, and especially saving possibilities, were bright whereas their views concerning Finland's economy were gloomy. Consumers considered raising of a loan slightly more favourable than before in March and their intentions of doing so also increased. They continued to predict that inflation would stay high.

Consumer views on the economic and financial conditions in Finland in March 2008, balances*

	Average 10/95-	Max. 10/95-	Min. 10/95-	March 2007	February 2008	March 2008	Situation**
Consumer confidence indicator (CCI)	13.9	21.8	3.5	16.5	10.1	12.9	-
CCI components:
Own economic situation in 12 months' time	9.5	14.1	2.3	12.2	9.6	9.8	+
Households' saving possibilities in the next 12 months	35.0	52.0	10.9	50.4	49.2	49.0	++
Finland's economic situation in 12 months time	5.6	21.7	-14.0	1.3	-11.4	-10.5	- -
Finland's unemployment situation in 12 months time	5.5	27.6	-22.7	2.0	-6.8	3.2	-
Others:
Inflation in 12 months' time, per cent	2.1	3.8	0.7	2.3	3.7	3.6
Own threat of unemployment at present	4.3	7.6	0.8	5.6	5.2	6.1	++
Financial situation of household at present	26.1	35.1	14.7	32.6	33.7	32.1	++
Favourable time to make major purchases at present	20.9	37.7	-2.1	23.1	25.3	24.2	+
Favourable time to save at present	9.8	36.8	-19.6	31.0	33.0	31.0	++
Favourable time to raise a loan at present	20.9	42.0	-13.5	8.4	-0.1	3.7	- -
* 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 - the higher the balance figure the brighter the view on the economy. ** ++ Situation is very good, + Situation is good, - Situation is bad, - - Situation is very bad.

In March, 17 per cent of consumers believed that Finland's economic situation would improve in the coming year, while 36 per cent of them thought that the country's economy would deteriorate. Twelve months earlier the respective proportions were 24 and 21 per cent. In all, 30 per cent of consumers believed in March that their own economy would improve and 14 per cent of them feared it would worsen over the coming year. One year ago these proportions were 30 and 10 per cent.

Altogether 37 per cent of consumers thought in March that unemployment would decrease over the coming 12 months, while 30 per cent of them believed it would increase. In February, the corresponding proportions were 29 and 39 per cent. Seventeen per cent of employed persons reckoned in March that their personal threat of unemployment had lessened over the past few months, while 11 per cent thought it had grown.

Consumers predicted in March that consumer prices would go up by 3.6 per cent over the next 12 months. The long-term predicted average inflation rate is 2.1 per cent.

Altogether 76 per cent of consumers considered saving worthwhile in March. Sixty-seven 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.

For the first time since last summer, more than one-half, or 53 per cent, of consumers regarded the time good for raising a loan in March. In February the respective proportion was 48 per cent and one year ago 57 per cent. Sixteen per cent of households were planning to raise a loan within one year. In February this proportion was only 11 per cent.

In March, 48 per cent of consumers thought the time was favourable for buying durable goods. Many households intended to spend money on, for instance, travel, home furnishings or domestic appliances during the next six months. Much like one year earlier,18 per cent of households were fairly or very certain to buy a car and 9 per cent a dwelling in the next twelve months.

Consumer confidence indicator (CCI) 10/1995-3/2008

Consumers' micro and macro indicators 10/1995-3/2008*

* Micro indicator is the average of three balance figures: 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, February 2008

* Calculated from seasonally adjusted series; average: 10/1995-
Source: European Commission, DG ECFIN, Business and Consumer Survey Results, February 2008
http://ec.europa.eu/economy_finance/db_indicators/db_indicators8650_en.htm

Source: Consumer Survey 2008, March. Statistics Finland

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

Director in charge: Mr Ari Tyrkkö

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Last updated 27.3.2008