HELSINKI: The consumer confidence indicator stood at 10.4 in March, having been 7.7 in February and 8.2 in January. The consumer confidence indicator received the value 11.2 in last year’s March.
The long-term average for the confidence indicator is 11.6, according to Statistics Finland’s data based on Consumer Survey. A total of 1,296 people resident in Finland were interviewed between 1 and 17 March for the survey. Consumers’ expectations concerning their own and Finland’s economy were cautious in the month.
Consumers’ views concerning their own economy remained unchanged compared with February, while views concerning Finland’s economy improved slightly. Views about unemployment also improved in March, however, remaining below the long term average.
By contrast, consumers’ expectations concerning their own saving possibilities were very bright in March. Consumers regarded the time more favourable for raising a loan and for buying durable goods than for saving. The personal threat of unemployment experienced by employed consumers was still higher than usual.
In March, 36 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 26 per cent of them thought that the country’s economy would deteriorate. In February, the respective proportions were 29 and 29 per cent and twelve months ago in March 30 and 25 per cent.
In all, 24 per cent of consumers believed in March that their own economy would improve and 15 per cent of them feared it would worsen over the year, the survey finds. Altogether 21 per cent of consumers thought in March that unemployment would decrease over the next 12 months, while 42 per cent of them believed it would increase. The corresponding proportions were 13 and 54 per cent in February and 17 and 47 per cent one year ago.
Ten per cent of employed persons reckoned in March that their personal threat of unemployment had lessened over the past few months, while 21 per cent thought it had grown. Twenty-five per cent of employed persons felt that they were not threatened by unemployment at all.
Consumers predicted in March that consumer prices would go up by 1.3 per cent over the next 12 months. The predicted long-term average inflation rate is 2.2 per cent. Fifteen per cent of households were fairly or very certain to buy a car but only five per cent a dwelling during the next 12 months. Nineteen per cent of households were planning to spend money on renovating their dwelling within a year.
Altogether 51 per cent of consumers considered saving worthwhile in March. Sixty-five per cent of households had been able to lay aside some money and as many as 79 per cent believed they would be able to do so during the next 12 months.
In the long term, the average share of households that saved or think they will be able to save is 60 and 74 per cent, respectively. In March, 66 per cent of consumers regarded the time good for raising a loan. Thirteen per cent of households considered raising a loan within one year, the statistics show.
Consumers’ confidence in the economy was strongest in Greater Helsinki. Among population groups, upper-level salaried employees and entrepreneurs were clearly most optimistic. Pensioners and unemployed persons had the gloomiest expectations concerning economic development.
