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Consumer confidence fell but remained on a strong level in October

Statistics:
Reference period:
2021, November
Published:
Next release:
The consumer confidence indicator (CCI) stood at 2.7 in October, having been 6.0 in September and 4.0 in August. In last year’s October the CCI received the value -6.9. The long-term average for the CCI is -1.7. The data are based on Statistics Finland’s Consumer Confidence Survey, to which 1,025 persons resident in Finland responded between 1 and 19 October.
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Key points

  • The components of the CCI are: consumer's own economy now, consumer's own economy in 12 months, Finland's economy in 12 months and consumer's spending money on major purchases in the next 12 months.
  • Both expectations and views concerning consumers’ own economy at present were very bright in October. Expectations concerning Finland’s economy were also optimistic.
  • Compared with September, expectations concerning one’s own economy in 12 months remained more or less unchanged in October. The other views concerning economy weakened clearly.
  • Compared with last year’s October, the views about economy were now considerably stronger.
  • Consumers had plenty of intentions to buy durable goods in October. The intentions clearly decreased in October compared to September. There were about as much of them now as one year ago.

Consumer confidence by major region and population group

In October, consumer confidence was, as usual, clearly strongest in Greater Helsinki (CCI 8.0) and weakest in Eastern Finland (-0.2). Among population groups, lower-level salaried employees (9.7) and upper-level salaried employees (9.6) were most optimistic. Pensioners had the gloomiest expectations concerning economic development (-7.4) in October.

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Consumer confidence usually decreases with the person’s age, and correspondingly the confidence typically increases as income grows. Men are likely to have better confidence in the economy than women. More detailed information is available in the database tables.

Consumers' own and Finland's economy

Both expectations and views concerning consumers’ own economy at present were very bright in October. Expectations concerning Finland’s economy were also optimistic. Compared with September, expectations concerning one’s own economy in 12 months remained more or less unchanged in October. The other views concerning economy weakened clearly. Compared with last year’s October, the views about economy were now considerably stronger.

In October, 39 per cent of consumers thought that Finland’s economy was now worse than a year ago and 30 per cent of consumers felt that it was better. Seventeen per cent of consumers thought that their own economy is at the moment worse than one year ago. Clearly more or 27 per cent of consumers considered their own economy stronger in October than one year ago. The proportions concerning consumers’ own economy were 15 and 29 per cent in September and 18 and 24 per cent one year ago.

In October, 37 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 24 per cent of them thought that the country’s economy would deteriorate. One month earlier, the corresponding proportions were 42 and 21 per cent and in last year’s October gloomy 21 and 52 per cent. 

In October, 29 per cent of consumers believed that their own economy would improve and 11 per cent of them feared it would worsen over the year. In September, the corresponding proportions were 29 and 11 per cent and twelve months ago 26 and 15 per cent.

Unemployment and inflation

Consumers’ expectations concerning the development of the general unemployment situation in Finland weakened slightly in October but still remained bright. This was also the case for views of the personal threat of unemployment or temporary lay-off experienced by the employed, that is, wage and salary earners and self-employed persons at the time of the survey.

Altogether 39 per cent of consumers expected in October that general unemployment in Finland would decrease over the next year, and 22 per cent of them believed it would increase. The corresponding proportions were 44 and 21 per cent in September, and very gloomy 12 and 76 per cent one year ago.

In October, nine per cent of employed persons believed that their personal threat of unemployment or lay-off had lessened over the past few months, whereas 14 per cent thought it had grown. On the other hand, as many as 48 per cent of employed persons felt that they were not threatened by unemployment or temporary lay-off at all. One month earlier these three proportions were 11, 11 and 49 per cent, and in October last year very gloomy 4, 34 and 37 per cent.

In October, consumers’ anticipation of the growth rate of consumer prices, i.e. inflation in 12 months, clearly exceeded its average long-term average. Consumers predicted in October that consumer prices would go up by as much as 3.2 per cent over the next 12 months. One year ago, the predicted inflation rate was 2.4 per cent and its long-term average is 2.9 per cent.

Saving and taking out a loan

As in previous months, consumers considered their own financial situation to be excellent in October. The time was considered very favourable for saving, also favourable for raising a loan and reasonable for buying durable goods. Saving possibilities were expected to be still fairly high in the coming months.

In October, 68 per cent of consumers thought the time was favourable for saving. Twelve months ago, the proportion was only 53 per cent. In October, 64 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 October, 58 per cent of consumers regarded the time good for taking out a loan. One year earlier, the corresponding proportion was only 44 per cent. As in the past few months, interest in raising a loan also was also notably common in October. In October, 19 per cent of consumers were planning to take out a loan within one year. The average long-term proportion is 16 per cent.

Use of money

Thirty per cent of consumers considered the time favourable for buying durable goods in October. Consumers had plenty of intentions to buy durable goods in October. The intentions clearly decreased in October compared to September. There were about as much of them now as one year ago. Fourteen per cent of consumers planned on increasing and 31 per cent on reducing their spending on durable goods over the next 12 months. In September, the latter proportions were 16 and 25 per cent and in last year's October 14 and 31 per cent.

Consumers still had very many intentions to buy a dwelling in October. Many consumers also had plans for home repairs. In addition, very many considered buying a car during the next 12 months.

In October, 17 per cent of consumers were either definitely or possibly going to buy a car during the next 12 months. Fifteen per cent of consumers considered buying a dwelling within a year. In addition, 21 per cent of consumers were planning in October to spend money on renovating their dwelling within a year. The long-term average for intentions to buy a car is 14 per cent, to buy a dwelling 13 per cent and to make renovations 18 per cent.

Database tables

Database tables related to this release

Updated database tables
Classifications used:
  • Socio-economic status
Updated:
15.11.2021
Classifications used:
  • Area
Updated:
15.11.2021
Classifications used:
  • Sex
Updated:
15.11.2021
Classifications used:
  • Level of education
Updated:
15.11.2021
Classifications used:
  • Age
Updated:
15.11.2021

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