Consumer confidence indicator soars in Dec

The consumer confidence indicator increased to 24.0 in December compared to 23.0 in November and 23.1 in October, according to Statistics Finland.

Last year in December, the indicator stood at 19.5. This year’s average consumer confidence indicator reached a record high of 22.9. The long-term average for 1995 to 2017 is 12.2. The data are based on Statistics Finland’s Consumer Survey in which 1,185 residents of Finland were interviewed between 1 and 15 December.

Of the four components of the consumer confidence indicator, expectations of consumers’ own and Finland’s economy and of household’s saving possibilities improved slightly in December from November. In turn, the estimates of the development of unemployment weakened a bit. Compared with the corresponding period last year, all the components of the indicator except saving possibilities posted a clear gain.

In December, consumers’ expectations concerning Finland's economy and unemployment were very bright. Consumers’ assessments about their own economic situation and saving possibilities were also good.

In December, consumers regarded the time very favourable for taking out a loan and for saving. Purchase of durable goods was also considered worthwhile. Employed consumers in December felt that their personal threat of unemployment has decreased much in recent months.

In December, 51 per cent of the consumers believed that Finland’s economic situation would improve over the next 12 months, while only eight per cent of them thought that the country’s economy would deteriorate. In November the corresponding percentages were 47 and eight and in December 2016 45 and 15.

In all, 30 per cent of the consumers believed that their own economy would improve in December and 11 per cent of them feared it would worsen over the year. One month earlier, the corresponding percentages were 28 and 11, and one year earlier 27 and 13.

Altogether 47 per cent of the consumers thought in December that unemployment would decrease over the next year, while 16 per cent of them believed it would increase. The shares were 48 and 16 per cent in November and 37 and 23 per cent one year ago.

Twenty per cent of the employed persons reckoned in December 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 December that consumer prices would go up by 1.6 per cent over the next 12 months. The predicted long-term average inflation rate is 2.2 per cent.

In December, 46 per cent of consumers thought that the time was favourable for buying durable goods. General intentions to spend money were picking up slightly. Nineteen per cent of the households were either very or fairly certain to buy a car during the next 12 months. Seven per cent of the households considered purchasing a dwelling. In December, 18 per cent of the households were planning to spend money on renovating their dwelling within a year.

In December, 68 per cent of the consumers considered the time favourable for saving. Twelve months ago the respective proportion was 53 per cent. In December, 67 per cent of the households were able to lay aside some money and 80 per cent believed they would be able to do so during the next 12 months.

In December, 76 per cent of the consumers regarded the time favourable for raising a loan. The long-term average proportion is 62 per cent. This December, 13 per cent of the households were thinking of taking out a loan within one year.

In December, consumers' confidence in the economy was strongest in the greater Helsinki area and weakest in northern Finland. Among the population groups, upper-level salaried employees and entrepreneurs were clearly most optimistic. Pensioners had the gloomiest expectations concerning economic development.

In November, as many as 85 per cent of the households with persons aged 15 to 84 had a home computer and 90 per cent had an Internet connection at their disposal. Fifty-seven per cent of the households owned a tablet. Eighty-two per cent of the households owned at least one smartphone and 20 per cent some type of wearable technology like an activity tracker, smartwatch or smartglasses.

Thirty-three per cent of the households were watching a smart TV in November. Twenty-eight per cent of the households had a gaming console and some even a remote-controlled camera drone. Seventy-eight per cent of the households owned a car in November. More information about the prevalence of equipment can be found in the appendix 12 to 15 and in the database table 003.

The balance figures are obtained by deducting the weighted proportion of negative answers from that of positive answers. The consumer confidence indicator (CCI) 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 is the balance figure, the brighter is the economic view.