Only seven percent of the respondents estimate that the time is favorable for making expensive purchases. Respondents also said they were unlikely to loosen their purse strings anytime soon, with only eight percent saying they plan to increase and 50 percent plan to cut their spending over the next 12 months.
Lasse CorinAktia’s chief economist saw the results of the survey as a warning sign for holiday sales, as many have tried to fill their Christmas baskets with durable goods.
“The Christmas retail season is expected to be significantly weaker because the harsh reality is that mortgage rates have risen and the cost of living in general has risen. This Christmas people will have less money on hand than last year because interest costs for mortgage borrowers have risen significantly over the past year,” he said For Helsingin Sanomat.
The Christmas holiday is the most important retail season of the year, especially in department stores and various specialty stores.
The trade association does not have statistics on holiday sales alone, but according to its statistics, retail sales are usually about one-fifth higher than the annual average in December, according to Helsingin Sanomat. The spokesman for the stakeholder group stated to the newspaper that the upcoming holiday may surprise positively, considering a couple of encouraging signs from the research data.
First of all, consumer confidence has risen slightly since October-September.
“The general indicator may have reached its lowest point in September. A strong employment situation is also reflected in consumer confidence data, when consumers see their personal unemployment risk as low,” said Heidi Lauttamäkieconomist from the Trade Union.
Employed respondents estimate that their personal risk of being fired or laid off is lower than the long-term average, possibly due to news that the employment rate trended up to 74.4% in October.
“Consumers have also considered their own financial situation to be good throughout the fall, which can mean surprising Christmas sales,” he added to Helsingin Sanomat.
Aleksi Teivainen – HT
Source: The Nordic Page