|Updated: 27.8.2014 - Next update: 29.9.2014|
Consumer confidence weakened in August
The consumer confidence indicator stood at 2.2 in August, whereas in July it was 9.4 and in June 8.7. One year ago in August, the confidence indicator received the value 5.0. The long-term average for the confidence indicator is 12.1. The data are based on Statistics Finlands Consumer Survey, for which 1,156 people resident in Finland were interviewed between 1 and 19 August.
Of the four components of the consumer confidence indicator, expectations concerning Finlands economy and development of unemployment weakened clearly in August from July. These components were roughly at the same level as one year ago in August. Consumers' views on their own economy and households saving possibilities remained almost unchanged in August compared to July.
In August, consumers considered raising a loan more worthwhile than purchasing of durable goods or saving. The personal threat of unemployment experienced by employed persons was almost at the same level in August as in July.
Consumers' own and Finland's economy
In August, 23 per cent of consumers believed that Finlands economic situation would improve in the coming twelve months, while 38 per cent of them thought that the countrys economy would deteriorate. The corresponding proportions were 35 and 23 per cent in July, and 25 and 35 per cent one year ago in August.
In all, 23 per cent of consumers believed in August that their own economy would improve and 15 per cent of them feared it would worsen over the year. One year ago, the respective proportions were 23 and 14 per cent.Statistical release
Statistics Finland / Consumer survey
Description of indicator
The Consumer Survey is a telephone interview survey by means of which it is possible to measure Finns’ images of the general economic development and the financial situation of one's own household and intentions to make major purchases, save money or take out a loan.
The consumer confidence indicator is the average of the balance figures for the CCI components. The balance figures and the confidence indicator can range between -100 and +100 – the higher (positive) balance figure, the brighter the view on the economy.
For the analysis of growth prospects, it is important to know how citizens perceive their own and the country’s economic situation and how citizens are preparing for the future through, among other things, their consumption habits and savings plans. The consumer survey provides diverse information about households’ willingness to consume or save, forecasts retail and price trends, and enables an evaluation of the current economic policy’s national legitimacy. Confidence indicators provide a broad knowledge base for forecasting both the development of the national economy and growth in household demand.
Finland’s economic policy objective is increase confidence in the economy by delivering stable and sustainable economic growth. Demand stimulus and fiscal balance are promoted particularly through job-creating labour market solutions and business-activating measures. Confidence in the economy is also increased by fairly implemented adjustment measures in central government finances, which over the long term safeguard the sustainability of general government finances and the funding of the welfare state.