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Home BUSINESSConsumer confidence weakens in September
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Tue, 29 Sep, 2015 12:08:30 AM
FTimes Report, Sep 29
 
Consumer confidence indicator (CCI). Source: Consumer Survey 2015, September. Statistics Finland.
The consumer confidence indicator (CCI) weakened in September, but remained stronger than one year ago.
 
The CCI stood at 4.2 in September, having been 8.3 in August and 6.9 in July, according to the data based on Statistics Finland’s Consumer Survey.
 
A total of 1,260 people resident in Finland were interviewed between 1 and 18 September for the survey.
 
Last year in September, the CCI received the value -0.7. The long-term average for the CCI is 11.8.
 
Of the four components of the CCI, only assessments of the household’s saving possibilities remained unchanged in September from August, but the other components deteriorated.
 
In September, consumers' views concerning their own economy were weak and views on Finland's economy and about unemployment were gloomy.
 
By contrast, belief in own saving possibilities remained good.
 
In September, consumers did not consider the time very favourable for raising a loan or buying durable goods, and in particular not for saving.
 
In September, employed consumers felt personally slightly more threatened by unemployment than on average, as was the case also in August and one year ago.
 
At least 24 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while more, or 36 per cent, of them thought that the country’s economy would deteriorate.
 
Consumers' expectations concerning their own and Finland's economy in 12 months' time. Source: Consumer Survey 2015, September. Statistics Finland.
The corresponding proportions were 30 and 27 per cent in August and pessimistic 17 and 42 per cent one year ago.
 
In all, 24 per cent of consumers believed in September that their own economy would improve and 16 per cent of them feared it would worsen over the year.
 
Only 12 per cent of consumers thought in September that unemployment would decrease over the next year, while 61 per cent of them believed it would increase. The corresponding proportions were 14 and 50 per cent in August and 9 and 66 per cent one year ago, the data show.
 
Twelve per cent of employed persons reckoned in September that their personal threat of unemployment had lessened over the past few months, while 19 per cent thought it had grown.
 
Twenty-two per cent of employed persons felt that they were not threatened by unemployment at all.
 
Consumers estimated in September that consumer prices would go up by 1.5 per cent over the next 12 months. The predicted long-term average inflation rate is 2.2 per cent.
 
In September, 46 per cent of consumers thought the time was favourable for making major purchases. The corresponding proportion was 38 per cent in September last year.
 
Only 13 per cent of households were fairly or very certain to buy a car and seven 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.
 
In September, 53 per cent of consumers considered saving worthwhile. Sixty-five per cent of households had been able to lay aside some money and as many as 81 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 have saved or think they will be able to save is 59 and 74 per cent, respectively, according to the statistics.
 
In September, 59 per cent of consumers regarded the time good for raising a loan. Nevertheless, only 12 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- 09/2014 08/2015 09/2015 Outlook
A1 Consumer confidence indicator, CCI = (B2+B4+B7+D2)/4 11,8 22,9 -6,5 -0,7 8,3 4,2 --
B2 Own economy in 12 months' time (balance) 8,4 14,1 2,3 3,6 5,5 4,8 --
B4 Finland's economy in 12 months' time (balance) 3,2 25,3 -27,1 -15,8 -0,7 -9,5 --
B6 Inflation in 12 months' time (per cent) 2,2 4,6 0,6 2,2 1,5 1,5  
B7 Unemployment in Finland in 12 months' time (balance) -3,5 27,6 -51,1 -32,6 -20,6 -28,3 --
B8 Own threat of unemployment now (balance) -1,2 7,6 -18,8 -9,2 -4,3 -3,7 -
C1 Favourability of time for purchasing durables (balance) 18,2 41,8 -14,2 3,3 20,1 15,5 =
C2 Favourability of time for saving (balance) 10,7 36,8 -19,6 2,3 7,4 5,2 -
C3 Favourability of time for raising a loan (balance) 16,9 42,0 -47,1 6,1 19,6 14,3 =
D2 Household's saving possibilities in the next 12 months (balance) 39,1 52,2 10,9 42,1 49,0 49,7 +

Source: Consumer Survey 2015, September. Statistics Finland.

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