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Published: 27 January 2014

Consumers’ views of Finland's economy improved

The consumer confidence indicator stood at 9.9 in January, having been 7.2 in December and 6.4 in November. Confidence in the economy was in January stronger than one year ago (4.5) but still somewhat below the long-term average (12.2). The data are based on Statistics Finland’s Consumer Survey, for which 1,322 people resident in Finland were interviewed between 2 and 20 January.

Consumer confidence indicator (CCI)

Of the four components of the consumer confidence indicator, expectations concerning Finland’s economy and the development of unemployment strengthened clearly in January compared with December. By contrast, assessments concerning own saving possibilities weakened but remained, nevertheless, bright. Consumer views on their own financial situation were almost unchanged, remaining cautious.

Even though expectations concerning general employment development improved in January, the personal threat of unemployment experienced by employed persons remained unchanged from December. Consumers regarded the time more favourable for raising a loan than for buying durable goods or saving in January.

Consumers' own and Finland's economy

In January, 39 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. The corresponding proportions were 31 and 29 per cent in December and 29 and 32 per cent one year ago in January.

In all, 26 per cent of consumers believed in January that their own economy would improve and 14 per cent of them feared it would worsen over the year. One year ago these proportions were 23 and 15 per cent.

Consumers' expectations concerning their own and Finland's economy in 12 months' time

Unemployment and inflation

Altogether, 17 per cent of consumers thought in January that unemployment would decrease over the year, while 47 per cent of them believed it would increase. The corresponding proportions were 15 and 55 per cent in December and 14 and 59 per cent one year ago in January.

In January, 9 per cent of employed persons believed that their personal threat of unemployment had lessened over the past few months, whereas 25 per cent thought it had grown. Forty-four 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.

In January, consumers predicted that consumer prices would go up by 2.7 per cent over the next 12 months. The long-term predicted average inflation rate is 2.3 per cent.

Buying of durable goods

In January, 43 per cent of consumers thought the time was favourable for buying durable goods. Fifteen per cent of households were fairly or very certain to buy a car and eight per cent a dwelling during the next 12 months. In January, 19 per cent of households were planning to to spend money on renovations to their dwelling within a year.

Saving and taking out a loan

As many as 56 per cent of consumers considered saving worthwhile in January. In all, 64 per cent of households had been able to lay aside some money and 76 per cent believed they would be able to do so during the next 12 months. Households mostly save for a rainy day and old age or for holiday making. After the popular fixed-term or investment accounts, the most common investment targets were insurances and investment funds.

In January, 60 per cent of consumers regarded the time good for raising a loan. In January, 11 per cent of households were planning to raise a loan within one year.

Consumers' views of the economy

	Average 10/1995-	Max. 10/1995-	Min. 10/1995-	01/2013	12/2013	01/2014	Outlook
A1 Consumer confidence indicator, CCI = (B2+B4+B7+D2)/4	12,2	22,9	-6,5	4,5	7,2	9,9	-
B2 Own economy in 12 months' time (balance)	8,6	14,1	2,3	5,5	6,0	7,3	-
B4 Finland's economy in 12 months' time (balance)	3,5	25,3	-27,1	-3,3	-0,8	7,3	+
B6 Inflation in 12 months' time (per cent)	2,3	4,6	0,6	2,9	2,5	2,7
B7 Unemployment in Finland in 12 months' time (balance)	-1,9	27,6	-51,1	-25,8	-22,3	-16,8	-
B8 Own threat of unemployment now (balance)	-0,2	7,6	-18,8	-8,2	-9,2	-9,9	--
C1 Favourability of time for purchasing durables (balance)	18,8	41,8	-14,2	4,9	5,2	12,9	-
C2 Favourability of time for saving (balance)	11,3	36,8	-19,6	10,9	5,1	8,8	+/-
C3 Favourability of time for raising a loan (balance)	17,1	42,0	-47,1	10,1	14,0	15,2	+/-
D2 Household's saving possibilities in the next 12 months (balance)	38,6	52,2	10,9	41,5	46,0	41,9	+

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 (positive) balance figure, the brighter the view on the economy.

Explanations for Outlook column: ++ 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.

The population and sample of the Survey

The population of the Consumer Survey comprises 4.4 million persons aged 15 to 84 and their 2.6 million households in Finland. The population was extended to persons aged 75 to 84 starting from January 2012. The gross size of the monthly sample of the Survey is 2,350 persons (previously 2,200 persons).

In January, the non-response rate of the Consumer Survey was 43.7 per cent. The non-response rate includes those who refused from the survey or were otherwise prevented from participating, as well as those who could not be contacted.

The extension of the population, that is, responses from persons aged 75 to 84, is estimated to have weakened the value of the consumer confidence indicator by good one unit starting from January 2012. This has primarily been caused by a drop in the balance figure of one component, namely own household's saving possibilities. The extension of the population has also somewhat affected the results on owning various home technology.

EU results

The (seasonally adjusted) Consumer Survey results for all EU countries are released on the European Commission website: European Commission, DG ECFIN, Business and Consumer Survey Results; http://ec.europa.eu/economy_finance/db_indicators/surveys/index_en.htm

Source: Consumer Survey 2014, January. Statistics Finland

Inquiries: Tara Junes 09 1734 3503, Pertti Kangassalo 09 1734 3598, consumer.survey@stat.fi

Director in charge: Riitta Harala

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Reviews

• 1. Method of the Consumer Survey (27.1.2014)

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Appendix tables

• Appendix table 1. Consumers' views and intentions (27.1.2014)

Figures

• Appendix figure 1. Consumer confidence indicator (CCI) (27.1.2014)
• Appendix figure 2. Micro and macro indicators (27.1.2014)
• Appendix figure 3. Own economy (27.1.2014)
• Appendix figure 4. Finland's economy (27.1.2014)
• Appendix figure 5. Inflation (27.1.2014)
• Appendix figure 6. Unemployment (27.1.2014)
• Appendix figure 7. Favourability of time for (27.1.2014)
• Appendix figure 8. Household's financial situation (27.1.2014)
• Appendix figure 9. Household's intentions to raise a loan, next 12 months (27.1.2014)
• Appendix figure10. Spending on durables, next 12 months vs last 12 months (27.1.2014)
• Appendix figure 11. Household's intentions to buy, next 12 months (27.1.2014)

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Updated 27.1.2014