Published: 27 August 2020

Consumer confidence weakened in August

The consumer confidence indicator (CCI) stood at -5.1 in August, whereas in July it was -1.6 and in June -3.9. The long-term average for the CCI is -1.8. Last year in August, the consumer confidence indicator received the value -4.5. The data are based on Statistics Finland’s Consumer Confidence Survey, to which 1,083 persons resident in Finland responded between 1 and 19 August.

Consumer confidence indicator (CCI)

Consumer confidence indicator (CCI)

All four components of the consumer confidence indicator weakened in August when compared to July. Compared to last year's August, expectations concerning one’s own economy were, however, slightly better, and intentions to spend money were roughly at the same level. In contrast, views on consumers’ own economy at present and expectations concerning Finland's economic development were worse in August than one year ago.

In August, consumers' views on Finland's economic development were again very weak. Views concerning the present state of one’s own economy were moderate, but expectations concerning the near future were fairly bright. In addition, intentions to spend money on durable goods were at a good level in August.

Consumers' expectations concerning their own and Finland's economy in 12 months' time

Consumers' expectations concerning their own and Finland's economy in 12 months' time

Consumers’ expectations concerning the development of the general employment situation weakened in August to an even gloomier level. The personal threat of unemployment among employed consumers, that is, wage and salary earners and self-employed persons, decreased slightly from the previous month but views still remained pessimistic. Consumers' estimates of the future growth rate of consumer prices rose in August.

In August, consumers considered their own financial situation to be still excellent. However, the time was regarded as poor for buying durable goods and raising a loan. As regards saving, the time was viewed as neutral. Estimates weakened clearly compared to July, especially concerning buying of durable goods. More consumers than usual were planning to take out a loan in August, and many were still going to buy a dwelling in the next 12 months. Basic home repairs and buying of a passenger car were also being planned.

Consumer confidence by major region and population group

In August, consumer confidence in the economy was strongest in Greater Helsinki (CCI -2.7) and weakest in Eastern Finland (-9.6). Of population groups, students were clearly most optimistic (3.8). Self-employed persons had the most pessimistic views concerning economic development (-14.0).

Consumer confidence usually decreases with the person’s age, and correspondingly the confidence typically increases as income grows. Men are likely to have better confidence in the economy than women. More detailed information is available in the Database tables .

EU results

The (seasonally adjusted) survey results concerning economic expectations for all EU countries are released monthly on the European Commission website: Press releases .

Concepts

The balance figures are obtained by deducting the weighted proportion of negative answers from that of positive answers. The consumer confidence indicator (CCI/A1) is the average of the balance figures for the CCI components. The components of the CCI are: consumer's own economy now (B1), consumer's own economy in 12 months (B2), Finland's economy in 12 months (B4) and consumer's spending money on major purchases in the next 12 months compared to the past 12 months (E1). The balance figures and the confidence indicator can range between -100 and +100 – the higher (positive) balance figure, the brighter the view on the economy.


Source: Consumer Confidence 2020, August. Statistics Finland

Inquiries: Tuomas Parikka 029 551 3276, consumer.confidence@stat.fi

Director in charge: Jari Tarkoma

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Updated 27.8.2020

Referencing instructions:

Official Statistics of Finland (OSF): Consumer Confidence [e-publication].
ISSN=2669-8889. August 2020. Helsinki: Statistics Finland [referred: 28.9.2020].
Access method: http://www.stat.fi/til/kbar/2020/08/kbar_2020_08_2020-08-27_tie_001_en.html