Finnish consumers are increasingly confident in both the national economy and their own economic situation, reports Statistics Finland.
Finland's consumer sentiment climbed to its highest level in five years in November, according to Statistics Finland.
The statistical institution reported yesterday that its consumer confidence index jumped to 17.6 in November, its highest reading since the first half of 2011, representing an increase of 1.4 from the previous month and an increase of 12.9 from the previous year. The index also stands well above its long-term average of 11.7.
Statistics Finland interviewed a total of 1,230 people for its Consumer Barometer on 1–18 November.
The confidence index consists of four components: consumers' forward-looking estimates of the employment situation, their own savings possibilities, the national economy and their personal economy.
More than four in ten (42%) of respondents estimated that the general economic situation will improve and 16 per cent that the economic situation will deteriorate over the next 12 months. The corresponding figures one year earlier were 30 and 29 per cent, respectively.
Roughly one-quarter (26%) of respondents indicated that they expect their own economic situation to improve and 13 per cent that they expect their own economic situation to worsen. The corresponding figures one year earlier were 23 and 13 per cent.
One-third (34%) of respondents expressed their optimism and roughly one-quarter (27%) their pessimism about the national employment situation. Both of the percentages represent a considerable improvement from the previous year, when only 11 per cent of respondents expected an increase and 63 per cent a decrease in employment.
Almost one in seven (15%) of employed respondents estimated that their personal threat of unemployment has decreased and 18 per cent that it has increased. Approximately a quarter (23%) of employed respondents estimated that they are at no risk whatsoever of losing their job.
Nearly one-half (47%) of respondents considered the time favourable for buying durable goods, even though respondents in general were cautious about spending. Almost one-fifth (17%) of households told that they are likely or very likely to buy a car and 8 per cent that they are likely or very likely to buy a home over the next 12 months. One-fifth of households also revealed that they are planning on spending money on renovating their home over the next 12 months.
Slightly more than a half (51%) of respondents said they consider the time favourable for saving. Two-thirds (66%) of households revealed that they have been able to set money aside, while four-fifths (80%) voiced their confidence in being able to do so during the next 12 months.
Only 13 per cent of households said they are planning on borrowing over the next twelve months, although more than two-thirds (71%) of respondents considered the time favourable for borrowing.
Consumer confidence in the economy is strong particularly in Northern Finland and Greater Helsinki. Senior executives are the most optimistic, while pensioners and the unemployed are the most unsure about economic developments in Finland, reports Statistics Finland.
Aleksi Teivainen – HT Photo: Vesa Moilanen – Lehtikuva
