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Home BUSINESSConsumer confidence in economy becomes stronger
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Thu, 28 Jan, 2016 12:03:15 AM
FTimes Report, Jan 28
 
Consumer confidence indicator (CCI). Source: Consumer Survey 2016, January. Statistics Finland.
Consumers’ confidence in the economy has improved for a change in current month, according to Statistics Finland’s data.
 
The consumer confidence indicator (CCI) stood at 8.2 in January 2016, having been 2.4 in December and 4.7 in November last year.
 
Last year in January, the CCI received the value 6.0. The long-term average for the CCI is 11.7 as per the data based on Statistics Finland’s Consumer Survey.
 
A total of1,240 people resident in Finland were interviewed between 4 and 19 January for the survey.
 
Of the four components of the CCI, expectations especially concerning Finland’s economy and general unemployment development improved clearly in January from December and the previous year.
 
Views on unemployment still remained rather gloomy, however. Consumers’ expectations concerning their own economy improved slightly in January.
 
By contrast, assessments concerning own saving possibilities weakened somewhat, the statistics show.
 
In January, consumers regarded the time fairly favourable for taking out a loan and, for the first time in a long time, also for buying durable goods but not for saving.
 
Employed consumers felt personally more threatened by unemployment than usual, as was the case already in December and one year ago.
 
In January, 37 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 25 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 2016, January. Statistics Finland.
The corresponding proportions were 24 and 38 per cent in December and 27 and 29 per cent one year ago in January.
 
In all, 24 per cent of consumers believed in January that their own economy would improve and 13 per cent of them feared it would worsen over the year. The respective proportions in December were 23 and 16 per cent.
 
Eleven per cent of employed persons reckoned in January that their personal threat of unemployment had lessened over the past few months, while 20 per cent thought it had grown.
 
Twenty-three per cent of employed persons felt that they were not threatened by unemployment at all.
 
In January, consumers predicted that consumer prices would go up by 1.4 per cent over the next 12 months.  
 
Fifty one per cent of consumers thought the time was favourable for buying durable goods. Many households planned on spending money on home repairs, interior decoration and travel.
 
Sixteen per cent of households were fairly or very certain to buy a car and nine per cent of them to buy a dwelling during the next 12 months.
 
Twenty-one per cent of households were planning to spend money on renovating their dwelling within a year.
 
In January, 52 per cent of consumers considered saving worthwhile. In all, 65 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 mainly planned on saving for a rainy day or for holiday making.
 
Next to traditional bank accounts, the most common planned investment targets were investment funds.
 
In January, 67 per cent of consumers regarded the time good for raising a loan. Fourteen per cent of households considered raising a loan within one year.
 
Greater Helsinki had a brighter view of the economy than the rest of the country. Among population groups, upper-level salaried employees were clearly most optimistic, according to the data.
 
Pensioners had the gloomiest expectations concerning economic development.
 

Consumers' views of the economy

 

  Average 10/1995- Max. 10/1995- Min. 10/1995- 01/2015 12/2015 01/2016 Outlook
A1 Consumer confidence indicator, CCI = (B2+B4+B7+D2)/4 11,7 22,9 -6,5 6,0 2,4 8,2 -
B2 Own economy in 12 months' time (balance) 8,3 14,1 2,3 6,7 4,2 6,3 -
B4 Finland's economy in 12 months' time (balance) 3,0 25,3 -27,1 -2,5 -10,4 3,7 =
B6 Inflation in 12 months' time (per cent) 2,2 4,6 0,6 1,7 1,5 1,4  
B7 Unemployment in Finland in 12 months' time (balance) -3,9 27,6 -51,1 -24,0 -29,7 -18,7 -
B8 Own threat of unemployment now (balance) -1,3 7,6 -18,8 -8,9 -5,2 -5,2 -
C1 Favourability of time for purchasing durables (balance) 18,2 41,8 -14,2 19,2 16,8 25,3 +
C2 Favourability of time for saving (balance) 10,6 36,8 -19,6 6,8 4,5 3,4 -
C3 Favourability of time for raising a loan (balance) 17,0 42,0 -47,1 14,3 20,1 25,1 +
D2 Household's saving possibilities in the next 12 months (balance) 39,2 52,2 10,9 44,0 45,5 41,5 =
Source: Consumer Survey 2016, January. Statistics Finland.
 
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