Home > Statistics > Consumer Confidence > 2009 > August > Consumers' views on the economy stable

Published: 27 August 2009

Consumers' views on the economy stable

Consumers' confidence in the economy has remained unchanged throughout the summer. The consumer confidence indicator stood at 8.2 in August, having been 8.4 in June and July, and 7.2 in May. Prior to this, confidence in the economy was negative from October to March. In August, consumers' confidence was about the same as one year earlier but still weaker than the long-term average. The data are based on Statistics Finland's Consumer Survey, for which 1,505 people resident in Finland were interviewed between 3 and 19 August.

Of the four components of the consumer confidence indicator, views concerning saving possibilities improved in August from the previous month. Views about the other components remained unchanged or deteriorated slightly. Consumers still continued to express some optimism regarding their own, and especially Finland's, economy. By contrast, their assessments about both general and own unemployment were gloomy. In August, consumers regarded the time favourable for purchasing durable goods and for raising a loan.

Consumer views on the economic and financial conditions in Finland in August 2009, balances*

	Average 10/95-	Max. 10/95-	Min. 10/95-	August 2008	July 2009	August 2009	Outlook**
Consumer confidence indicator (CCI)	12.9	21.8	-6.5	8.7	8.4	8.2	-
CCI components:
Own economic situation in 12 months' time	9.1	14.1	2.3	3.2	7.1	6.2	-
Households' saving possibilities in the next 12 months	36.2	52.0	10.9	50.5	43.4	47.3	+
Finland's economic situation in 12 months' time	4.0	21.7	-27.1	-16.0	11.7	10.8	+
Finland's unemployment situation in 12 months' time	2.4	27.6	-51.1	-2.9	-28.6	-31.5	- -
Others:
Inflation in 12 months' time, per cent	2.1	4.6	0.7	3.9	1.6	1.5
Own threat of unemployment at present	1.5	7.6	-18.8	3.0	-15.0	-14.6	- -
Financial situation of household at present	26.7	35.1	14.7	31.9	32.4	34.3	+
Favourable time to make major purchases at present	20.3	41.8	-14.2	-1.9	41.8	34.2	+
Favourable time to save at present	10.8	36.8	-19.6	29.0	8.9	11.0	+/-
Favourable time to raise a loan at present	18.0	42.0	-47.1	-27.7	19.8	19.7	+/-
* 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. ** ++ Outlook is very good, + Outlook is good, +/- Outlook is neutral, - Outlook is poor, - - Outlook is very poor. Deviation of balance from average has been compared to standard deviation.

In August, 45 per cent of consumers believed that Finland's economic situation would improve in the coming twelve months, while 21 per cent of them thought that the country's economy would deteriorate. Twelve months earlier the respective proportions were 15 and 43 per cent. In all, 23 per cent of consumers believed in August that their own economy would improve and only 12 per cent of them feared it would worsen over the year.

Only 13 per cent of consumers thought in August that unemployment would decrease over the year, while 66 per cent of them believed it would increase. Twelve months earlier the respective proportions were 28 and 32 per cent.

Just 7 per cent of employed persons believed in August that their personal threat of unemployment had lessened over the past few months, whereas 30 per cent thought it had grown. Twelve months earlier the respective proportions were 14 and 13 per cent. In August, 41 per cent of employed persons thought the threat had remained unchanged and 21 per cent felt that they were not threatened by unemployment at all.

Consumers predicted in August that consumer prices would go up by 1.5 per cent over the next 12 months. In August 2008, the corresponding figure was 3.9 per cent. The long-term predicted average inflation rate is 2.1 per cent.

Altogether 58 per cent of consumers considered saving worthwhile in August. Twelve months earlier the corresponding percentage was 73. Sixty-seven per cent of households had been able to lay aside some money and 79 per cent believed they would be able to do so during the next 12 months.

In August, 63 per cent of consumers regarded the time good for raising a loan. One year previously the respective share was 26 per cent and, at its lowest last October, only 13 per cent. In August, 13 per cent of households were planning to take out a loan within one year.

Fifty-seven per cent of consumers thought the time favourable in August for buying durable goods. One year earlier 34 per cent of them thought so and, at its lowest last October, the respective share of consumers was 30 per cent. Consumption plans in August were mostly moderate, but many households were planning to spend money on, for instance, home furnishings and repairs during the next six months. Sixteen per cent of households were fairly or very certain to buy a car and 7 per cent a dwelling during the next 12 months. In last year's August the corresponding proportions were 16 and 8 per cent.

The August interviews for the Consumer Survey also examined households' ownership of various technical equipment. The data on this will be made available later on the Survey's Internet pages.

Consumer confidence indicator (CCI) 10/1995-8/2009

Consumers' micro and macro indicators 10/1995-8/2009*

* 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, July 2009

* Calculated from seasonally adjusted series. Average: 10/1995-. Data for Ireland missing.
Source: European Commission, DG ECFIN, Business and Consumer Survey Results, July 2009
http://ec.europa.eu/economy_finance/db_indicators/db_indicators8650_en.htm

Source: Consumer Survey 2009, August. Statistics Finland

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

Director in charge: Ari Tyrkkö

Consumer Confidence 2009, August (pdf 198.9 kB)

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Last updated 27.8.2009