Monday 8/10/20

Finnish consumers remain pessimistic

In November, more people felt that their personal threat of unemployment has increased considerably in recent times, says Statistics Finland.

In Finland, consumer confidence in the economy marked a very slight rise in November compared to October, but still remains sunk in negative values ​​that reflect pessimism.

According to Statistics Finland, the Consumer Confidence Indicator (CCI) rose a little bit month-on-month in November and stood at -5.0, having been -6.6 in October and -4.2 in September. In last year's November, the CCI received the value -1.7.

Consumer confidence has been in negative values during the last two years. The average since January 2018 is -0.7.


Source: Statistics Finland.

Intentions to spend money

Of the four components of the CCI expectations of consumers’ own and Finland’s economy improved slightly in November from October.

Intentions to spend money on durable goods were somewhat higher in November than one month earlier. Apart from spending, the CCI components were still weak in November, especially views about economic development in Finland.

Compared to the corresponding period last year, consumers’ assessments about their own economy at the time of the survey improved slightly in November, while intentions to spend money increased. In contrast, expectations on their own and, in particular, Finland’s economy weakened over the year.


Source: Statistics Finland.

Fear of unemployment

In November, consumers increasingly expected the unemployment situation in Finland to become gloomier in future. In addition, consumers felt that their personal threat of unemployment had increased considerably in recent times. However, nearly every second employed person did not experience any threat.

In November, consumers considered their own financial situation to be average. The time was, in general, regarded favourable for raising a loan, but not for buying durable goods nor saving.

Consumers' confidence in the economy was strongest in Greater Helsinki (CCI -0.3) and weakest in Eastern Finland (-10.7). Among population groups, lower-level salaried employees (1.1) and upper-level salaried employees (0.7) were most optimistic. Pensioners clearly had the gloomiest expectations concerning economic development (-17.6).