Home > Statistics > Consumer Confidence > 2010 > January > Consumers' confidence in the economy unchanged in January

Published: 27 January 2010

Consumers' confidence in the economy unchanged in January

Consumers' confidence in the economy remained stronger than the average in January. The consumer confidence indicator stood at 14.5 in January, having been 14.4 in December and 10.9 in November. At the same time consumer confidence was in January clearly stronger than one year before. The data are based on Statistics Finland's Consumer Survey, for which 1,421 people resident in Finland were interviewed between 4 and 19 January.

Of the four components of the consumer confidence indicator expectations on own and Finland's economy, and the development of employment improved slightly in January from the month before. By contrast, assessments of own saving possibilities weakened but remained, nevertheless, bright. Although economy was otherwise predicted to develop positively, views about general unemployment, as well as about own unemployment continued to be gloomy in January. Consumers regarded January a favourable time especially for purchasing durable goods.

Consumer views on the economic and financial conditions in Finland in January 2010, balances¹⁾

	Average 10/95-	Max. 10/95-	Min. 10/95-	January  2009	December 2009	January 2010	Outlook2)
Consumer confidence indicator (CCI)	12.9	21.8	-6.5	-3.9	14.4	14.5	+/-
CCI components:
Own economic situation in 12 months' time	9.1	14.1	2.3	3.5	8.9	10.2	+/-
Household's saving possibilities in the next 12 months	36.5	52.0	10.9	44.7	50.7	44.7	+
Finland's economic situation in 12 months' time	4.5	21.7	-27.1	-17.0	19.8	21.7	++
Finland's unemployment situation in 12 months' time	1.6	27.6	-51.1	-46.7	-21.8	-18.7	-
Others:
Inflation in 12 months' time, per cent	2.1	4.6	0.7	2.0	1.9	1.9
Own threat of unemployment at present	0.6	7.6	-18.8	-11.9	-9.7	-9.4	-
Financial situation of household at present	26.9	35.1	14.7	30.5	33.7	30.7	+
Favourable time for buying durable goods	20.8	41.8	-14.2	31.0	39.8	38.2	++
Favourable time for saving	10.8	36.8	-19.6	15.3	10.4	8.6	+/-
Favourable time for raising a loan	18.2	42.0	-47.1	-1.0	28.5	23.2	+/-
1) 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. 2) ++ 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 January, 57 per cent of consumers believed that Finland's economic situation would improve in the coming twelve months, while 14 per cent of them thought that the country's economy would deteriorate. One year ago, the corresponding proportions were pessimistic 22 and 48 per cent. In all, 28 per cent of consumers believed in January that their own economy would improve and only 10 per cent of them feared it would worsen over the year. Twelve months ago the respective shares were 21 and 14 per cent.

Altogether 19 per cent of consumers thought in January that unemployment would decrease over the year, while 51 per cent of them believed it would increase. Twelve months earlier the respective proportions were even gloomier at 7 and 80 per cent. Just 10 per cent of employed persons believed in January that their personal threat of unemployment had lessened over the past few months, whereas 26 per cent thought it had grown. Forty-four per cent of employed persons thought the threat had remained unchanged and 19 per cent felt that they were not threatened by unemployment at all.

In January, consumers predicted that consumer prices would go up by 1.9 per cent over the next 12 months. The long-term predicted average inflation rate is 2.1 per cent.

Altogether 56 per cent of consumers considered saving worthwhile in January. Sixty-four 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. The most usual investment targets after fixed-term and investment accounts are insurance policies, and mutual funds in which interest had already died down slightly.

In January, 66 per cent of consumers regarded the time good for raising a loan. Twelve months ago the respective proportion was 48 per cent. In January, 13 per cent of households were planning to raise a loan within one year.

In January, 59 per cent of consumers thought the time was favourable for buying durable goods. Consumption intentions were mostly moderate, but many households had plans to spend money on, for instance, entertainment electronics, hobby equipment, and travel during the next six months. Fifteen per cent of households were fairly or very certain to buy a car and 8 per cent a dwelling during the next 12 months. In last year's January the corresponding proportions were 16 and 6 per cent.

Consumer confidence indicator (CCI) 10/1995-1/2010

Consumers' expectations concerning their own and Finland's economy in 12 months' time 10/1995-1/2010

Deviation of CCI from country average in EU member states, December 2009

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

Source: Consumer Survey 2010, January. Statistics Finland

Inquiries: Pertti Kangassalo (09) 1734 3598, kuluttaja.barometri@stat.fi

Director in charge: Ari Tyrkkö

Consumer Confidence 2010, January (pdf 199.9 kB)

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Last updated 27.1.2010