Monday 06.07.2020

Consumer confidence in the economy back to pre-coronavirus levels

 The clearest improvement was seen in expectations concerning Finland's economy in 12 months' time.
Finns' confidence in the economy back to pre-coronavirus levels

The mental image that the Finns have of their economy continues to improve, although it remains at historically low values. 

The most positive fact is that economic expectations, although still gloomy, are already back to the levels they were before the coronavirus crisis.

According to Statistics Finland's Consumer Confidence survey, in June the consumer confidence indicator (CCI) stood at -3.9 in a scale in which any negative value still means pessimism. However, confidence is already higher than in February 2020 (-4.5).

In May it was -9% and in April even worse (-13.9%). In last year’s June, the CCI received the value -4.6. The long-term average for the CCI is -1.8.Consumer-confidence-JuneSource: Statistics Finland.

All four components of the CCI improved in June from the previous month. The clearest improvement was seen in expectations concerning Finland's economy in 12 months' time.

Compared with the corresponding period last year, expectations concerning one's own and Finland's economy were now brighter. In contrast, views on one's own economy at present were slightly worse in June than one year ago, and intentions to spend money on durable goods remained unchanged from one year ago.

In June, consumers' views on Finland's economic development were still weak. In contrast, views concerning consumers' own economy at present and in the near future were more or less in line with the long-term average views. In addition, consumption intentions were already quite promising in June.


Source: Statistics Finland.


Consumers' expectations concerning the development of the unemployment situation in Finland also improved significantly in June, but the expectations were still on a gloomy level. The same could be seen in the personal threat of unemployment experienced by employed consumers, that is, wage and salary earners and self-employed persons.

In June, consumers considered their own financial situation to be still excellent. The time was already regarded as somewhat favourable for saving but poor for buying durable goods and especially for raising a loan. These estimates also improved clearly in a month. In addition, as in previous months, a considerable number of households considered taking out a loan and buying a dwelling in June during the next 12 months.

By region and population group

In June, consumers' confidence in the economy was strongest in Greater Helsinki (CCI -2.4) and weakest elsewhere in Southern Finland (-5.0).

Among population groups, upper-level salaried employees (0.8) and workers (0.7) were most optimistic. Pensioners (-12.4) and unemployed persons (-7.4) had the most pessimistic views concerning economic development. The CCI received the value -1.0 among self-employed persons in June.

The data are based on Statistics Finland’s Consumer Confidence Survey, to which 1,100 persons resident in Finland responded between 1 and 17 June.