Tuesday. 22.10.2019
El tiempo

Fear of unemployment keeps confidence in Finnish economy to a minimum

Employed consumers felt that their personal threat of unemployment has also increased considerably in recent times, according to data of the Consumer Confidence Indicator (CCI).
Fear of unemployment keeps confidence in Finnish economy to a minimum

Finland's population's confidence in the economy remained negative in September, which is a sign of pessimism. 

According to the latest data collected by Statistics Finland, this pessimism is not directly linked to the current situation that households live, but derived from people's fear of losing their jobs and the impoverishment that would cause.

For this reason, the consumer confidence indicator (CCI) remained in minimum values. In September stood at -4.2, having been -4.5 in August and -3.9 in July. One year ago, in September 2018, the consumer confidence received the value +1.5.

consumer-confidence-indicator-septemberSource: Statistics Finland.

Of the four components of the CCI, expectations on the development of Finland’s economy became still gloomier in September. In turn, the assessment concerning consumers’ own current economic situation and also the situation in the near future improved compared to August.

But compared with the corresponding period last year, the expectations on both the own and Finland’s economy weakened in September. "The view on Finland’s economy absolutely plummeted over the year", Statistics Finland remarked.

Consumer-expectations

Source: Statistics Finland.

Fear of unemployment

In September, consumers foresaw more and more clearly that Finland’s unemployment situation will weaken in the future.

Furthermore, employed consumers felt that their personal threat of unemployment has also increased considerably in recent times. On the other hand, nearly every second employed person did not experience any threat.

In September, consumers 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 and especially not for saving.

Confidence by region and population group

In September, consumers' confidence in the economy was strongest in Greater Helsinki (CCI -1.3) and Northern Finland (-1.3) and weakest in Western Finland (-6.8).

Among population groups, students were most optimistic (6.7). In September, pensioners (-15.4) and unemployed persons (-12.2) 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.

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