Consumer confidence in Finland’s economy has remained in negative territory for three consecutive years, according to new data from Statistics Finland. The most significant factor behind the prolonged pessimism is global instability, followed by concerns about inflation and purchasing power.
Nearly 85 percent of respondents said that international developments, including wars, conflicts and trade tensions, had influenced their views on the future of the Finnish economy.
Almost all of these respondents reported that the impact was negative.
“Almost as much weight in consumers’ thinking was given to the rise in consumer prices and the development of purchasing power,” said Pertti Kangassalo, Senior Actuary at Statistics Finland, writing in the agency’s Tieto&trendit blog. “Nearly 80 percent of respondents said inflation, even though it has recently slowed, had affected their outlook, mostly for the worse.”
The March survey was carried out in coordination with the European Commission. A set of additional one-off questions was included in the consumer confidence survey to assess how various factors influenced perceptions of the economy in Finland and 16 other EU countries.
About two-thirds of Finnish respondents cited concerns over labour market conditions, including unemployment, as well as changes in taxation, social benefits, and domestic political developments.
In contrast, some signs of optimism were linked to interest rate cuts and technological progress. Roughly one in three respondents said these developments had positively affected their economic outlook.
Kangassalo noted differences between age groups. “For example, global developments had significantly less impact on the assessments of those under 30 compared to older age groups, and the effect was the least negative among the young,” he wrote. A similar pattern was observed with respect to climate change.
Despite improving inflation figures and some signs of economic stabilisation, the long-standing lack of confidence suggests broader uncertainty persists across households. According to Statistics Finland, it is uncommon to determine the causes of changes in consumer sentiment from standard survey data. However, this time, the special set of questions funded by the European Commission provided more detailed insight into the reasons behind consumers' economic assessments.
The Finnish consumer confidence indicator has been in the negative for three years, reflecting ongoing concerns about both domestic conditions and international uncertainty.
HT