Consumer confidence on the rise

The consumer confidence indicator is on the rise in Finland and people's economic expectations have strengthened, Statistics Finland reported on Monday, reported Xinhua.

The official Consumer Confidence Indicator (CCI) stood at minus 1.6 in July above its long-term statistical average of minus 1.8, following very low figures this past spring. The respective figures were minus 3.9 in June and minus 9.0 in May. In July 2019, the CCI was minus 3.9.

However, overall consumer expectations of the national economy remain weak. Those currently in employment feel at risk of losing their job and the relevant figure remains unchanged from June.

Statistics Finland based its report on a survey of 1,034 persons resident in Finland between July 1 and July 19.

The Business Tendency Survey carried out by the Confederation of Finnish Industries (EK), also published on Monday, showed that Finnish companies saw the business cycle weakening during the summer although prospects have improved.

The EK noted in a press release that "the Finnish economy is recovering gradually, but the level of uncertainty remains high towards the autumn."

"Driven by consumer demand, the retail sector has fared quite well, but the situation continues to escalate in the manufacturing and construction sectors," said Sami Pakarinen, chief economic policy advisor at the EK. The survey showed that lack of demand is currently the most significant problem for Finnish companies.

"Business outlooks throughout the business community have increased to minus 11 from a disheartening minus 59 in April," the survey said.

"In services, the outlook indicator has risen to close to zero. Judging from the outlooks, the worst phase of the coronavirus crisis will soon be over," it said.

The EK also noted that "a potential second wave (of COVID-19) has not really been taken into account in the economic forecasts. With a possible second wave, the autumn may be very difficult, as a prolonged crisis would also mean recurring impacts."

A total of 1,047 companies employing nearly 250,000 people in Finland responded to the EK survey.