The indicator was -1.7 in January and -3.0 in March 2021.
Finnish consumers are currently pessimistic about their own and especially the national economy. Expectations of the national economy have not been as gloomy since December 2008, according to Statistics Finland.
Consumers’ perceptions of their own economic situation and expectations of the general employment situation fell sharply, but remained close to their long-term average. Employees and entrepreneurs who responded to the consumer sentiment survey reported that their personal threat of resignation or layoff has decreased moderately from the previous month.
Their assessments and expectations of inflation rose further above long-term averages, and expectations hit an all-time high in the 27-year history of the study.
Finns estimate that the time is relatively favorable for saving, but quite unsuitable for buying durable goods or taking out a loan. However, the answers show that quite a few are planning to take out a loan.
Finnish consumers still think a lot about buying or building a home in the next 12 months.
Statistics Finland interviewed March surveyed 1,014 people.
Hannu NummiaroMiddle Tapiola Private Economist, told me According to YLE, a decline in consumer confidence is typically a sign of the start of cautious saving.
โHousehold consumption has been the biggest cyclical factor since the start of the coronavirus crisis. Now the weakening of confidence is releasing air from the household-led recovery, โhe commented to the broadcaster.
Reijo HeiskanenOP Financial Group’s chief economist added that the sharp decline in confidence has not yet been reflected in card payments.
โDespite the rapid decline in confidence, it does not appear that people have started to reduce their purchases quickly, unlike during the year. [first] coronavirus spring, which was reflected very directly in consumption. “
Although consumers tend to reconsider particularly large purchases, such as cars and homes, in the midst of economic uncertainty, Heiskanen estimates that consumer choices are currently dictated more by rising inflation than by the desire to save money: as inflation accelerates, consumers will see their own. purchasing power is declining.
โCurrent views suggest that inflation will be higher than previously expected, which will have a negative impact on household purchasing power and consumption over time,โ he said.
Aleksi Teivainen – HT
Source: The Nordic Page