Consumer confidence remains weak in January

The balance figure of the consumer confidence indicator stood (CCI) at minus 8.4 in January, having been minus 8.6 in December and minus 7.4 in November, according to Statistics Finland.

One year ago in January, the consumer confidence indicator received the value minus 9.1. The long-term average for the CCI is minus 2.6.

The data are based on the Consumer Confidence Survey, to which 1,238 persons resident in Finland responded between January 1 and January 16, 2025.

In January 2025, the views on consumers’ own economy at present still weakened compared to the previous month and were very low.

Expectations concerning both consumers’ own and Finland's economy in 12 months remained almost unchanged and subdued.

The time was still regarded very unfavourable for buying durable goods and intentions to spend money on consumption were low. In addition, fewer than usual were planning to buy a dwelling.

Expectations concerning the general development of unemployment continued gloomy, and consumers felt that their personal threat of unemployment was high. Estimates of inflation remained high.

Consumers' own financial situation was now estimated to be slightly brighter than the long-term average.

In January 2025, confidence in the economy was strongest in Greater Helsinki (CCI minus 6.2). Confidence was weakest in Western Finland (minus 10.7).

Of population groups, self-employed persons were most optimistic ( minus 0.8). Pensioners had the gloomiest expectations concerning economic development in January ( minus 17.8).

Women ( minus 11.8) described economic development in January as clearly gloomier than men did ( minus 5.1).

In January, consumers' estimated of their own economy at present still weakened compared to the month before and were on a very low level. Expectations concerning both one's own and Finland's economy in 12 months remained almost unchanged and subdued in January.

However, compared to one year ago, the picture of Finland's economy brightened slightly, while expectations concerning consumers’ own economy weakened somewhat.

Twenty-nine per cent of consumers thought in January that their own economy was weaker at the time of the survey than one year ago. Only 21 per cent of consumers regarded their own economy stronger than in the previous year.

Sixty-three per cent of consumers thought in January that Finland’s economic situation was now worse than one year earlier, and only nine per cent saw it as better.

In January, 23 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 38 per cent of them thought that our country’s economy would deteriorate.

In all, 30 per cent of consumers trusted in January that their own economy would improve and 18 per cent of them feared it would worsen over the year.

Consumers' expectations concerning the development of the general unemployment situation in Finland continued very pessimistic in January. Only 13 per cent of consumers expected that unemployment would decrease over the next year and as many as 60 per cent reckoned it would increase.

Employed consumers (wage and salary earners and self-employed persons) thought in January that their personal threat of unemployment or lay-off was high.

Four per cent of employed persons believed that their personal threat had lessened and 26 per cent thought the risk had grown. On the other hand, 43 per cent of employed persons felt in January that they were not threatened by unemployment or temporary lay-off at all.

In January, consumers' estimates of the inflation at the time of the survey and concerning price changes in one year's time remained unchanged and fairly high.

Consumers estimated that consumer prices have risen by 5.2 per cent from last year's January and would go up by 4.1 per cent over the next year.

Altogether 64 per cent of consumers thought that consumer prices have risen much or fairly much over the year, and 50 per cent of them expected prices to rise at least at the same rate over the coming months as well.

In January, the time was still regarded very poor for taking out a loan and also for saving. Thirty-one per cent of consumers regarded the time favourable for raising a loan and 41 per cent considered saving worthwhile.

However, slightly more than usual were planning to take out a loan in January. Seventeen per cent of consumers were planning to raise a loan within one year.

Consumers' assessment of their own financial situation was slightly brighter than the long-term average. Consumers estimated that their saving possibilities would be similar to usual in the coming months. Fifty-seven per cent of consumers had been able to lay aside some money and 72 per cent believed they would be able to do so during the next 12 months.

Despite a slight recovery, the time in January was still considered very unfavourable for buying durable goods. Only 13 per cent of consumers thought the time was favourable for making expensive purchases.

Consumers’ intentions to spend money on durable goods in the next 12 months continued very low. In January, 11 per cent of consumers estimated that they would increase and 41 per cent would reduce their spending on durable goods over the next 12 months.

In January, as many as usual were thinking of buying a car within the next 12 months for a change. By contrast, consumers still had slightly fewer plans than usual to buy a dwelling and to renovate their own dwelling.

In January, 14 per cent of consumers were either definitely or possibly going to buy a car within the next 12 months. Only 11 per cent of consumers considered buying a dwelling or building a house. Fifteen per cent of consumers were planning to spend money on renovating their dwelling during the next 12 months.