Consumer confidence has not improved: only few believe that the economic situation is improving

Finnish Consumers continued their gloom in February, says Statistics Finland. The confidence indicator figures fell slightly compared to January and remained well below the long -term average. The indicator balance number was -9.0, while the average was -2.6.

The estimate of the current state of my own economy was gloomy and expectations for the Finnish economy were mild. Only more than one fifth of consumers believed in the improvement of Finland’s economic situation over the next year.

“Consumers’ views are understandable, as general economic development has long been weak in Finland for a long time in Finland and elsewhere in Europe, in importance to us. In addition Pertti Kangassalo in the bulletin.

Waiting General unemployment development continued to darken, and the threat of unemployment was considered to be high. Estimates of inflation were rising.

61 % of consumers estimate that unemployment will increase in the coming year and over a quarter estimate that their own risk of unemployment has increased.

Consumers still considered the time to be very unfavorable to the purchase of permanent goods, and there was little money to spend on consumption. Buying an apartment was considered by a fewer than normal consumers.

“Weak trust and low estimates, especially from one’s own economy, are shown to be reflected in consumer behavior. Unemployment and layoffs are a reality for many. However, consumers’ purchasing power has already been widespread when money has been saved, inflation slowed down, interest rates and wages have risen. Thus, there are hopes for increasing consumption in the near future, ”Kangassalo said.

Finnish Entrepreneur’s economist Roope Ohlsbom It considered it a bit surprising that consumers’ concerns about prices have worsened, even though inflation in Finland has long remained very low. Consumers’ depression mood has a widespread effect on the economy, as household consumption is about half of Finland’s GDP, he pointed out.

“Calculated interest rates, the growing purchasing power of consumers and other positive factors do not yet appear in consumer confidence or private consumption. Weak consumption density directly affects companies’ ability to hire additional labor, which reduces the number of vacancies. There has been a spiral of poor financial confidence in Finland, ”Ohlsbom said in a release.

I: n confidence indicator by Business trust did not change much in February. There was a slight rise in industry and services, but construction and trade went down.

“According to the EK February Cyclical Site, companies are slowly improving, even though the recovery as a whole has been cautious. The cycle of industrial and services was slightly strengthened, while in retail, warehouse growth weighed on a confidence indicator. In construction, the business cycle has remained remarkably weak, ”said EK’s chief economist Urrila pen in the bulletin.