Consumer confidence remains strong in August

The consumer confidence indicator (CCI) stood at 23.5 in August, which stood at 22.8 in July and 23.9 in June, according to Statistics Finland.

Last year in August, CCI received the value of 15.7. The long-term average for the CCI is 12.1.

The data is based on Statistics Finland’s Consumer Survey, under which 1,213 people residing in Finland were interviewed between 1 and 18 August.

Of the components of CCI, consumers’ expectations concerning household saving possibilities improved in August from July.

In contrast, views on their own economy somewhat weakened in general. Expectations concerning Finland’s economy and the development of unemployment remained about the same. Compared with the corresponding period last year, the CCI components improved or stayed at the same level in August.

In August, consumers’ expectations of Finland’s economic situation and unemployment stayed very optimistic. Also estimates on their own economy and saving possibilities were positive in August.

In August, consumers regarded the time favourable for taking out a loan and to some degree also for saving and buying durable goods. Employed consumers felt in August that their personal threat of unemployment had somewhat lessened over the past few months.

In August, 49 per cent of consumers believed that Finland’s economic situation would improve in the next 12 months, while 10 per cent of them thought that the country’s economy would deteriorate. The corresponding proportions were 47 and 8 per cent in July, and 39 and 18 per cent in August 2016.

In all, 26 per cent consumers believed in August that their own economy would improve and only 12 per cent of them feared it would worsen over the year. In July, the respective proportions were 28 and 9 per cent and 12 months ago 27 and 13 per cent.

Altogether 50 per cent consumers thought in August that unemployment would decrease over the year, while 16 per cent of them believed it would increase. Twelve months previously, the corresponding proportions were fairly gloomy at 28 and 33 per cent.

Sixteen per cent of the employed persons reckoned in August that their personal threat of unemployment had lessened over the past few months, while 13 per cent thought it had grown. Thirty-one per cent of employed persons felt that they were not threatened by unemployment at all.

Consumers predicted in August that consumer prices would go up by 1.6 per cent over the next 12 months. One year earlier the predicted inflation rate was 1.4 per cent, and its long-term average is 2.2 per cent.

In August, 44 per cent consumers thought the time was favourable for buying durable goods. General intentions to spend money were moderate in August. Sixteen per cent households were fairly or very certain to buy a car during the next 12 months. Eight per cent households considered buying a dwelling. In August, 19 per cent households were planning to spend money on renovating their dwellings within a year.

Altogether, 63 per cent consumers considered saving worthwhile in August. Sixty-eight per cent households had been able to lay aside some money and 80 per cent believed they would be able to do so during the next 12 months.

In August, 72 per cent consumers regarded the time good for raising a loan. The long-term average proportion is 62 per cent. Eleven per cent households were planning to raise a loan.