Consumer confidence strengthened

Finnish consumer confidence improved in July. It is still in negative values, which denotes pessimism, but the figures show that the Finns have improved their prospects for the future regarding the progress of the country's economy and their own.

According to Statistics Finland, the consumer confidence indicator (CCI) stood at -1.6 in July, having been -3.9 in June and -9.0 in May. Last year in July, the CCI received the value -3.9.

Source: Statistics Finland.

Of the four components of the CCI, expectations of one’s own and Finland’s economy strengthened in July compared to June. In addition, intentions to spend money on durable goods increased. Views concerning consumers’ own economy at present remained unchanged.

Also compared with the corresponding period last year, expectations concerning the economy were now brighter and consumption intentions were higher. By contrast, views on the present state of the own economy were worse than one year earlier.

In July, consumers' views on Finland's economic development were still weak. By contrast, expectations concerning the near future of one's own economy were already fairly bright, and the views of its present state corresponded to the long-term average views. In addition, consumption intentions were already on a good level in July.

Source: Statistics Finland.

Employment expectations

Consumers' expectations concerning the development of the general unemployment situation in Finland improved further in July, but the expectations were still on a rather gloomy level.

Employed consumers (wage and salary earners and self-employed persons), felt personally very threatened by unemployment and the threat had not decreased in one month. Consumers' estimates of the future growth rate of consumer prices remained more or less unchanged in July.

In July, consumers still considered their own financial situation to be excellent. The time was regarded as somewhat favourable for buying durable goods and saving, but poor for raising a loan. The estimates improved clearly in a month.

Large purchases are tempting

In addition, as in the previous months, more consumers than usual were considering raising a loan in July, and a record number intended to buy a dwelling during the next 12 months. There were again also extensive plans on renovating one’s own dwelling and buying a passenger car.

Consumer confidence was strongest in Greater Helsinki (CCI 2.0) and weakest in Western Finland (-3.8). Among population groups, upper-level salaried employees were clearly most optimistic (7.2).

Pensioners had the most pessimistic expectations concerning economic development (-10.7). The CCI received the value -6.1 among self-employed persons in July.

The data are based on Statistics Finland’s Consumer Confidence Survey, to which 1,034 persons resident in Finland responded between 1 and 19 July.