Published: 27 July 2020

Consumer confidence exceeded its average – large purchases are tempting

The consumer confidence indicator (CCI) stood at -1.6 in July, having been -3.9 in June and -9.0 in May. The long-term average for the CCI is -1.8. Last year in July, the CCI received the value -3.9. 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.

Consumer confidence indicator (CCI)

Consumer confidence indicator (CCI)

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 in July 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.

Consumers' expectations concerning their own and Finland's economy in 12 months' time

Consumers' expectations concerning their own and Finland's economy in 12 months' time

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, i.e. 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. 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 by major region and population group

In July, 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.

Consumer confidence usually decreases with the person’s age, and correspondingly the confidence typically increases as income grows. Men are likely to have better confidence in the economy than women. More detailed information is available in the Database tables .

EU results

The (seasonally adjusted) survey results concerning economic expectations for all EU countries are released monthly on the European Commission website: Press releases .

Concepts

The balance figures are obtained by deducting the weighted proportion of negative answers from that of positive answers. The consumer confidence indicator (CCI/A1) is the average of the balance figures for the CCI components. The components of the CCI are: consumer's own economy now (B1), consumer's own economy in 12 months (B2), Finland's economy in 12 months (B4) and consumer's spending money on major purchases in the next 12 months compared to the past 12 months (E1). 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.


Source: Consumer Confidence 2020, July. Statistics Finland

Inquiries: Pertti Kangassalo 029 551 3598, consumer.confidence@stat.fi

Director in charge: Jari Tarkoma

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Updated 27.7.2020

Referencing instructions:

Official Statistics of Finland (OSF): Consumer Confidence [e-publication].
ISSN=2669-8889. July 2020. Helsinki: Statistics Finland [referred: 15.8.2020].
Access method: http://www.stat.fi/til/kbar/2020/07/kbar_2020_07_2020-07-27_tie_001_en.html