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Home BUSINESSConsumer confidence remains on level
Fri, 28 Oct, 2016 12:09:13 AM
FTimes Report, Oct 28
Consumer confidence indicator (CCI). Source: Consumer Survey 2016, October. Statistics Finland.
The consumer confidence indicator (CCI) stood at 15.8 in October, having been 14.4 in September and 15.7 in August.
In last year’s October the CCI received the value 1.3. The long-term average for the CCI is 11.7 as per the data based on Statistics Finland’s Consumer Survey.
A total of 1,252 people resident in Finland were interviewed between 3 and 19 October for the survey.
Of the four components of the CCI, expectations on own and Finland’s economy and own saving possibilities improved slightly in October from September.
The assessment about the development of unemployment remained more or less unchanged.
Compared with the corresponding period last year, all the components improved clearly in October.
In October, consumers’ expectations concerning Finland’s economy were bright. Expectations on the consumer’s own economy and general unemployment were at long-term average levels.
Consumers considered their own saving possibilities good over the next 12 months.
In October, consumers regarded the time favourable for buying durable goods and especially for taking out a loan but not so much for saving. Employed consumers felt personally somewhat threatened by unemployment in the month.
Forty-one per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 17 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, October. Statistics Finland.
The corresponding proportions were 39 and 19 per cent in September and pessimistic 27 and 37 per cent one year ago.
In October, 26 per cent of consumers believed that their own economy would improve and 13 per cent of them feared it would worsen over the year. One year ago the respective proportions were 22 and 18 per cent, the data show.
Altogether 30 per cent of consumers thought in October that unemployment would decrease over the year, while 32 per cent of them believed it would increase. The corresponding proportions were 28 and 30 per cent in September and gloomy 12 and 60 per cent one year ago.
Thirteen per cent of employed persons reckoned in October that their personal threat of unemployment had lessened over the past few months, while 18 per cent thought it had grown.
Twenty-three per cent of employed persons felt that they were not threatened by unemployment at all.
Consumers predicted in October that consumer prices would go up by 1.5 per cent over the next 12 months. One year previously, the predicted inflation rate was 1.2 per cent. The long-term predicted average inflation rate is 2.2 per cent.
In October, 47 per cent of consumers thought the time was favourable for buying durable goods. General intentions to spend money were still moderate. Sixteen per cent of households were fairly or very certain to buy a car and seven per cent a dwelling during the next 12 months. In October, 18 per cent of households were planning to spend money on renovating their dwelling within a year.
In all, 57 per cent of consumers considered saving worthwhile in October. In all, 68 per cent of households had been able to lay aside some money and 78 per cent believed they would be able to do so during the next 12 months.
In the long term, an average of 60 and 74 per cent of households has been saving or think they will be able to save.
In October, households mainly planned on saving for a rainy day or for a holiday trip. Next to various bank accounts, the most planned investment targets were investment funds.
Seventy-three per cent of consumers regarded the time good for raising a loan. Slightly more households than usual, that is, 14 per cent considered taking out a loan with a year – mainly for a dwelling in a housing company or consumption.
In October, consumers' confidence in the economy was strongest in Greater Helsinki and Northern Finland. Among population groups, upper-level salaried employees were 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- 10/2015 09/2016 10/2016 Outlook
A1 Consumer confidence indicator, CCI = (B2+B4+B7+D2)/4 11.7 22.9 -6.5 1.3 14.4 15.8 +
B2 Own economy in 12 months' time (balance) 8.3 14.1 2.3 2.5 7.1 8.0 =
B4 Finland's economy in 12 months' time (balance) 3.2 25.3 -27.1 -8.7 9.2 11.4 +
B6 Inflation in 12 months' time (per cent) 2.2 4.6 0.6 1.2 1.3 1.5  
B7 Unemployment in Finland in 12 months' time (balance) -4.1 27.6 -51.1 -27.7 -1.7 -2.0 =
B8 Own threat of unemployment now (balance) -1.5 7.6 -18.8 -5.7 -3.1 -3.2 -
C1 Favourability of time for purchasing durables (balance) 18.3 41.8 -14.2 15.6 21.4 22.4 +
C2 Favourability of time for saving (balance) 10.4 36.8 -19.6 2.5 3.7 8.3 =
C3 Favourability of time for raising a loan (balance) 17.4 42.0 -47.1 14.4 29.5 31.3 +
D2 Household's saving possibilities in the next 12 months (balance) 39.4 52.2 10.9 39.1 42.9 45.6 +

Source: Consumer Survey 2016, October. Statistics Finland.

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