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Home BUSINESSConsumers’ confidence in economy weakens in October
Wed, 28 Oct, 2015 12:07:29 AM
FTimes Report, Oct 28
Consumer confidence indicator (CCI). Source: Consumer Survey 2015, October. Statistics Finland.
Consumers’ confidence in the economy weakened further in October, according to Statistics Finland’s data.
The consumer confidence indicator (CCI) stood at 1.3 in October, having been 4.2 in September and 8.3 in August.
In last year’s October the CCI received the value 0.4. The long-term average for the CCI is 11.7 as per the data based on Consumer Survey, for which 1,299 people resident in Finland were interviewed between 1 and 19 October.
Of the four components of the CCI, consumers' views concerning their own economy and household’s saving possibilities, weakened in October compared with September.
Views on Finland’s economy and of unemployment remained unchanged but gloomy.
Consumers' views concerning their own economy were weak in October and assessments concerning their own saving possibilities were on the long term average level, the survey finds.
In October, consumers did not consider the time very favourable for raising a loan or buying durable goods, and, in particular, not for saving.
In October, employed consumers felt personally more threatened by unemployment than on average, as was the case also in September and one year ago.
At least 27 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while more, or 37 per cent, of them thought that the country’s economy would deteriorate. Twelve months previously, the corresponding proportions were 21 and 35 per cent.
Some 22 per cent of consumers believed that their own economy would improve and 18 per cent of them feared it would worsen over the year.
 In September, the respective proportions were 24 and 16 per cent and twelve months ago 22 and 14 per cent.
Only 12 per cent of consumers thought in October that unemployment would decrease over the year, while 60 per cent of them believed it would increase.
Twelve months earlier the respective proportions were even more pessimistic at 9 and 68 per cent.
Twelve per cent of employed persons reckoned in October that their personal threat of unemployment had lessened over the past few months, while 21 per cent thought it had grown.
Twenty-four per cent of employed persons felt that they were not threatened by unemployment at all.
Consumers' expectations concerning their own and Finland's economy in 12 months' time. Source: Consumer Survey 2015, October. Statistics Finland.
Consumers predicted in October that consumer prices would go up by 1.2 per cent over the next 12 months.
In September, the predicted inflation rate was 1.5 per cent, and its long-term average is 2.2 per cent.
In October, 44 per cent of consumers thought the time was favourable for buying durable goods. Sixteen per cent of households were fairlyor very certain to buy a car and 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.
In all, 50 per cent of consumers considered saving worthwhile in October. In all, 62 per cent of households had been able to lay aside some money and 74 per cent believed they would be able to do so during the next 12 months.
Households mostly save for a rainy day or for holiday making. After the popular fixed-term or investment accounts, the most common investment targets are investment funds.
In October, 58 per cent of consumers regarded the time good for raising a loan. Fewer households than normal, or 11 per cent of them, were planning in October to raise a loan within one year, the data show.
Northern Finland and Greater Helsinki had a brighter view of the economy than the rest of the country in October.
Among population groups, upper-level salaried employees were clearly most optimistic.
Pensioners and unemployed persons had the gloomiest expectations concerning economic development.

Consumers' views of the economy


  Average 10/1995- Max. 10/1995- Min. 10/1995- 10/2014 09/2015 10/2015 Outlook
A1 Consumer confidence indicator, CCI = (B2+B4+B7+D2)/4 11,7 22,9 -6,5 0,4 4,2 1,3 --
B2 Own economy in 12 months' time (balance) 8,4 14,1 2,3 4,9 4,8 2,5 --
B4 Finland's economy in 12 months' time (balance) 3,1 25,3 -27,1 -10,2 -9,5 -8,7 --
B6 Inflation in 12 months' time (per cent) 2,2 4,6 0,6 1,6 1,5 1,2  
B7 Unemployment in Finland in 12 months' time (balance) -3,6 27,6 -51,1 -33,7 -28,3 -27,7 --
B8 Own threat of unemployment now (balance) -1,2 7,6 -18,8 -7,5 -3,7 -5,7 -
C1 Favourability of time for purchasing durables (balance) 18,2 41,8 -14,2 11,4 15,5 15,6 =
C2 Favourability of time for saving (balance) 10,7 36,8 -19,6 5,1 5,2 2,5 -
C3 Favourability of time for raising a loan (balance) 16,9 42,0 -47,1 13,8 14,3 14,4 =
D2 Household's saving possibilities in the next 12 months (balance) 39,1 52,2 10,9 40,5 49,7 39,1 =

Source: Consumer Survey 2015, October. Statistics Finland.

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