The coronavirus crisis and the gloomy outlook looming over the economy have further fueled pessimism among Finland's residents.
According to Statistics Finland, the consumer confidence indicator (CCI) stood at -13.9 in April, its lowest level since confidence measurement records exist (1995-2020). Last, year, in April, the CCI received the value -1.7 and last month (March) it was -7.1.
Source: Statistics Finland.
In April, all four components of the CCI weakened clearly from the previous month, as well as from the corresponding period of last year.
The components are: views on consumers’ own economy now, expectations concerning their own and Finland's economy in 12 months, and intentions to spend money on durable goods in the next 12 months.
In April, each component of the CCI was on a dismal level and at the same time close to its record low in 2008 to 2009, except for views on one’s own economy at present. Consumers also expressed fewer intentions of buying durable goods in April than ever before.
Source: Statistics Finland.
Economic disaster expected
However, consumer's expectations about their personal situation are not that bad. It is the part about the future of the Finnish economy that causes more pessimistic expectations among citizens. In this case, the value dropped to -30.8. This leaves no doubt that many expect an economic disaster.
According to Statistics Finland, consumers’ estimate of the development of employment situation in Finland also dropped to a gloomy level in April.
The same applied to the personal threat of unemployment experienced by consumers, that is, wage and salary earners and self-employed persons. This treat was considered worst ever. In contrast, expectations concerning the rising rate of consumer prices remained unchanged in April.
By population group
In April, consumers' confidence in the economy was strongest in Northern Finland (CCI -10.1) and in Greater Helsinki (-10.7) and weakest in elsewhere in Southern Finland (-17.9).
Students (-6.7) were the least pessimistic population group. Pensioners clearly had the gloomiest expectations concerning economic development (-21.4). Among self-employed persons, the CCI fell to -17.7 in April.
