Consumer confidence in Finnish economy sank in October

Consumer confidence in Finnish economy sank in October and stood at -6.6. With this new decline, it is already twelve months in a row that confidence registers negative values, which is equivalent to a year of pessimism on the part of Finnish consumers.

The consumer confidence indicator (CCI) had been -4.2 in September and -4.5 in August. We have to go back in statistics until October 2018 to find consumer confidence in positive values ​​(0.2%), equivalent to a shy optimism that disappeared the following month. The average for the CCI since January 2018 is -0.5.

Source: Statistics Finland.

The data are based on Statistics Finland’s Consumer Confidence Survey, to which 1,008 persons resident in Finland responded between 1 and 20 October.

Consumers’ confidence in all four components of the CCI weakened in October both from September and the previous year. Expectations on the development of Finland’s economy plummeted from the previous year and were gloomy in October.

Fear of unemployment

The views on consumers’ own current economic situation and the situation in the near future were subdued. At the same time, the intentions to spend money have also decreased to an average level.

In October, consumers foresaw strongly that also Finland’s unemployment situation will weaken in the future. Furthermore, employed consumers felt that their personal threat of unemployment has increased considerably in recent times. On the other hand, every second employed respondent did not experience any threat.

Source: Statistics Finland.

In October, consumers still considered their own financial situation to be good. The time was, in general, regarded favourable for raising a loan but not for buying durable goods or for saving.

By region and population group

In October, consumers’ confidence in the economy was strongest in Greater Helsinki (CCI -3.2) and Northern Finland (-3.8) and weakest in Western and Eastern Finland (-9.3).

Among population groups, students (-0.5) and lower-level salaried employees (-0.6) were most optimistic. In October, pensioners (-16.6) and unemployed persons (-14.8) had the gloomiest expectations concerning economic development.

Confidence in the economy usually lessens with the person’s age. Correspondingly, the confidence usually strengthens with education and income. Men are inclined to believe in the economy more than women, says Statistics Finland.