The balance figure of the consumer confidence indicator stood at minus 12.6 in April, having been minus 9.4 in March and minus 9.5 in February, according to Statistics Finland.
One year ago in April, the consumer confidence indicator (CCI) received the value minus 7.9. The long-term average for the CCI is minus 2.5.
The data are based on Statistics Finland’ consumer confidence survey, to which 1,211 persons resident in Finland responded between April 1 and April 18.
Views on both consumers' own and Finland's economy weakened from March and also compared to one year ago.
Expectations concerning Finland's economy in 12 months' time were on a gloomy level.
Expectations concerning consumers' own economy and especially estimates of their own economy at present were very weak.
The time was still regarded very unfavourable for buying durable goods. Intentions to spend money on consumption, such as buying a car, were low. Intentions to buy a dwelling continued very subdued.
Expectations concerning the general development of unemployment were gloomy, and consumers still felt that their personal threat of unemployment was fairly high.
Consumers’ views on their own financial situation remained on the average level. In future, consumers predicted that their saving possibilities would be slightly lesser than usual.
In April, consumer confidence in the economy was strongest in Greater Helsinki (CCI minus 8.5). Confidence was weakest in Northern Finland ( minus 17.2).
Among population groups, upper-level salaried employees were clearly most optimistic in April ( minus 4.7). Pensioners had the gloomiest expectations concerning economic development ( minus 22.8).
As many as 33 per cent of consumers thought in April that their own economy was weaker than one year ago. Twenty per cent of consumers regarded their own economy stronger at the time of the survey than one year ago.
As many as 74 per cent of consumers thought in April that Finland’s economic situation was now worse than one year earlier, and only four per cent saw it as better.
In April, 19 per cent of consumers believed that Finland’s economic situation would improve in the coming twelve months, while 42 per cent of them thought that our country’s economy would deteriorate.
In all, 27 per cent of consumers believed in April that their own economy would improve and 20 per cent of them feared it would worsen over the year.
Consumers' expectations concerning the development of the general unemployment situation in Finland became still gloomier in April. Eleven per cent of consumers expected that unemployment would decrease over the year and 58 per cent believed it would increase.
In April, employed consumers (wage and salary earners and self-employed persons) felt that their personal threat of unemployment or lay-off had still remained fairly high.
Four per cent of employed persons believed that their personal threat had lessened and 22 per cent thought the risk had grown. On the other hand, 45 per cent of employed persons felt in April that they were not threatened by unemployment or temporary lay-off at all.
In April, consumers' estimates of the inflation at the time of the inquiry and expectations concerning price changes in a year continued to fall slightly. All in all, their estimates of inflation were still fairly high.
Consumers estimated in April that consumer prices have risen by 5.7 per cent from April last year and would go up by 3.8 per cent over the next year.
Altogether 65 per cent of consumers thought that consumer prices have risen much or fairly much over the year, and 44 per cent of them expected prices to rise at least at the same rate over the coming months as well.
In April, the time was still regarded very poor for taking out a loan and also for saving. Just 12 per cent of consumers regarded the time favourable for taking out a loan and 38 per cent considered saving worthwhile.
At the same time, intentions to raise a loan were slightly lower in April than usual. Fourteen per cent of consumers were planning to raise a loan within one year.
In April, good one half or 55 per cent of consumers had been able to lay aside some money and 70 per cent believed they would be able to do so during the next 12 months.
The time was still regarded very unfavourable for buying durable goods. Only 12 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 April. Intentions to make purchases fell from April and also from one year ago.
In April, only eight per cent of consumers estimated that they would increase and as many as 44 per cent would reduce their spending on durable goods over the next 12 months.
There were clearly fewer plans than usual to buy a car over the next 12 months. Intentions to buy a dwelling also remained low: very few consumers had a new dwelling in mind. By contrast, intentions to renovate one's own dwelling increased in April to the average level.
In April, only 11 per cent of consumers were either definitely or possibly going to buy a passenger car during the next 12 months. Only 10 per cent of consumers considered buying a dwelling or building a house. Seventeen per cent of consumers were planning to spend money on renovating their dwelling during the next 12 months.
Source: www.dailyfinland.fi
As an experienced economist, it’s troubling to see the continuous decline in consumer confidence. The data clearly indicate a growing pessimism among consumers about their own and Finland’s economy. This downward trend raises concerns about future spending habits and the overall economic outlook. It’s crucial for policymakers to take proactive measures to address these underlying issues and restore confidence in the market.
It’s disheartening to see the decline in consumer confidence as highlighted in the article. People’s views on the economy, both personal and national, seem to be deteriorating, with grim expectations for the future. The data reveals a concerning trend towards pessimism, reflected in the weakened intentions to make significant purchases. Let’s hope for a turnaround and brighter prospects ahead.
It’s really concerning to see the consumer confidence taking a hit like this. The data clearly show a downward trend, and people’s views on both their own economy and the country’s future are getting gloomier. Let’s hope for some positive changes soon.
Does this drop in consumer confidence indicate potential challenges for the Finnish economy in the coming months?
Yes, the decline in consumer confidence could indeed pose challenges for the Finnish economy in the upcoming months. When consumers lack confidence in the economy, they tend to reduce their spending, impacting businesses and overall economic growth. It’s crucial for policymakers to address the underlying issues causing this decline to prevent further negative effects on the economy.
It’s disheartening to see consumer confidence taking such a hit in April. The statistics reflect a concerning trend with weakening views on both individual and national economies. The outlook seems gloomy with low intentions for spending and buying, indicating a lack of optimism among consumers. Let’s hope for a turnaround in the near future.
It’s concerning to see the consumer confidence take another hit in April. The data shows a clear decline in optimism about both the personal and national economy. The future outlook seems gloomy, with weak expectations for spending and buying decisions. Hopefully, there will be some positive shifts soon to boost confidence levels.
How can the consumer confidence indicator drop so significantly from last month and last year? What factors are contributing to this downward trend?
Do you think the drop in consumer confidence is primarily due to economic factors, or are there other underlying reasons affecting it?