Consumer confidence weakens further in Finland in September

The balance figure of the consumer confidence indicator stood at minus 4.9 in September, having been minus 3.0 in August and minus 5.3 in July, according to Statistics Finland.

One year ago in September, the consumer confidence indicator (CCI) received the value minus 6.6.

The long-term average for the indicator since 1995 is minus 2.9.

The data are based on the Consumer Confidence Survey, to which 1,157 persons resident in Finland responded between 1 and 17 September.

In September, consumer confidence in the economy was highest in Greater Helsinki (CCI -2.4) and weakest in Eastern Finland (-10.7).

Among socio-economic groups, upper-level salaried employees were fairly optimistic (1.1). Unemployed persons (-13.1) and pensioners (-11.5) had a very negative view concerning economic development in September.

In September, women’s (-7.4) interpretation of the economic development was still clearly gloomier than men’s (-2.4).

Consumers’ expectations concerning Finland’s economy in 12 months’ time were on their long-term average level in September. By contrast, expectations concerning one’s own economy were subdued and estimates of its present state very weak.

Twenty-eight per cent of consumers thought in September that their own economy was worse at the time of the survey than one year previously.

Slightly fewer, or 25 per cent of consumers, considered their own economy to be better than in the year before. In September, one half, or 51 per cent of consumers, thought that Finland’s economic situation is now weaker than one year earlier, and only 18 per cent saw it as stronger.

In September, 30 per cent of consumers expected that Finland’s economic situation would improve in the coming twelve months, while 32 per cent of them assumed that our country’s economy would decline. In all, 29 per cent of consumers believed in September that their own economy would improve and 19 per cent feared it would weaken over the year.

Consumers' expectations concerning the development of the general unemployment situation in Finland remained on the long-term average level in September.

Twenty-five per cent of consumers expected that unemployment would decrease over the coming year and 44 per cent believed it would increase.

In September, employed consumers reckoned that their personal threat of unemployment or lay-off was still high. Only five per cent of employed persons believed that their personal threat had lessened and 27 per cent thought the risk had increased. On the other hand, 36 per cent of employed persons felt in September that they were not threatened by unemployment or lay-off at all.

In September, consumers' estimates of the inflation at the time of the survey and expectations concerning price changes in one year's time remained nearly unchanged and fairly high.

Consumers estimated in September that consumer prices have risen by 4.9 per cent from last year's September and would go up by 4.1 per cent over the next year.

Altogether 60 per cent of consumers thought consumer prices have risen much or fairly much over the year, and as many as 65 per cent of them expected prices to rise at least at the same rate over the coming months as well.

In September, the time was still regarded to be very poor for raising a loan and unfavourable for saving as well. Twenty-five per cent of consumers regarded the time favourable for raising a loan and 46 per cent considered saving worthwhile. However, clearly more consumers than usual had plans to raise a loan in September. As many as 19 per cent of consumers were planning to raise a loan within one year.

Consumers' assessments of their own financial situation were on their long-term average level in September. It was also estimated that saving possibilities would be on the usual level in the coming months. Fifty-eight per cent of consumers had been able to lay aside some money and 72 per cent believed they would be able to do so during the next 12 months.

In September, the time was still regarded very unfavourable for buying durable goods. Only 15 per cent of consumers thought the time was favourable for making expensive purchases.

Consumers’ intentions to spend money on durable goods within the next 12 months decreased slightly again in September. Intentions were slightly lower than usual. In September, 13 per cent of consumers estimated they would increase and 37 per cent that they would reduce their spending on durable goods over the next 12 months.

However, clearly more consumers than usual considered buying a car over the next 12 months in September. Plans to buy a dwelling were still on a slightly lower level than the long-term average. Intentions to renovate one’s dwelling were on the usual level in September.

In September, as many as 17 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Twelve per cent of consumers considered buying a dwelling or building a house. Seventeen per cent of consumers were planning to spend money on renovating their home during the next 12 months.