Pedestrians in Helsinki. LEHTIKUVA
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Consumer confidence in July remained nearly unchanged from the previous month, with the confidence indicator reading at -7.2, slightly up from June’s -7.6. This marks an improvement from last July’s figure of -8.8. However, confidence in the general employment situation remains low.
Over half of the respondents anticipate an increase in unemployment over the next 12 months.
Employed consumers continue to feel a significant threat of personal unemployment or layoffs. Conversely, 40% of employed respondents believe they face no risk of unemployment or layoffs.
“Consumer confidence showed little change compared to June. Essentially, average views on the current state of personal finances, expectations for one’s own economy and Finland’s economy, and intentions to purchase durable goods remained nearly the same,” explained Tara Junes, Chief Actuary at Statistics Finland.
Cautious Optimism in Spending Plans
Despite the largely unchanged outlook on the economy, some observations can be made regarding future spending intentions.
“Compared to June, more consumers now plan to spend at least as much on durable goods over the next year as they did in the past year. However, the future is not yet seen as particularly bright, as these intentions remain below the usual levels,” Junes added.
In addition to spending plans, consumer optimism appears to have increased regarding the household’s ability to save money over the next year.
“Views on the possibility of saving money over the next year are nearing typical levels, with around 74% of consumers believing their household will be able to save well or fairly likely,” Junes noted.
Timing of Survey Responses May Influence Results
It’s important to consider the timing of the survey responses when interpreting the results of the July confidence indicator.
“Many employed respondents likely answered at a time when holiday bonuses were visible in their bank accounts. Additionally, students working summer jobs may have a better financial situation compared to the main study months. Therefore, it is very possible that the observed changes in spending and saving in July are partly due to the timing of pay in the summer months. It will be interesting to see how the situation develops in August,” Junes reflected.
The July consumer confidence indicator is based on the consumer confidence survey conducted by Statistics Finland, with responses from 1,184 residents of Finland collected between July 1 and July 21. Despite the holiday season, the number of responses was consistent with other months.
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Source: www.helsinkitimes.fi
