The overall situation in Finland reflects a period of economic uncertainty and cautious consumer sentiment. While consumer confidence slightly declined in September 2024 compared to the previous month, it showed some recovery from the previous year. The public is concerned about the economy, with a majority believing that Finland's economic situation has worsened, especially in Eastern Finland. Self-employed individuals are relatively optimistic, but the unemployed hold a more pessimistic view, particularly regarding future economic growth and job security. Many consumers remain hesitant about making significant purchases, saving, or borrowing, as they face continued uncertainty about their financial prospects and the broader economy.
According to Statistics Finland, consumer confidence on both own finances and Finland's economy in September 2024 slightly declined compared to the previous month but showed some improvement from the prior year. Consumer confidence was strongest in Western Finland and weakest in Eastern Finland. Among various groups within the population, self-employed persons were the most positive, while unemployed persons had the most pessimistic expectations concerning economic growth.
Current assessments of the economy as well as expectations regarding consumers' personal financial situations were at a very low level. By September, 28% of consumers felt their financial situation had declined over the past year, while 23% reported improvement. Meanwhile, 62% thought Finland's economy had worsened, and only 10% saw progress.
Expectations for Finland's economic situation a year from now were modest. In September, 22% of consumers were optimistic about Finland's economic situation over the next year, but 39% expected it to worsen. As for the own consumers finances, 27% predicted improvement, while 19% were concerned about a decline.
The period was seen as even less favorable than before for purchasing durable goods, with only 10% of consumers seeing it as a good opportunity. Though spending intentions on consumer items remained minimal, 12% expected to increase purchases, while 38% planned to reduce them. Car-buying interest rose slightly, with 15% considering it, but plans for buying or building a home (11%) and renovating (16%) remained low. Only a small number were considering buying a property.
Expectations about the general trend of unemployment continued to be quite negative, with consumers believing their personal likelihood of job loss was fairly high. Only 13% of consumers anticipated a decline in unemployment over the next year, while 55% expected it to rise.
Consumers viewed their personal financial situation as fairly positive. Looking ahead, they anticipated that their saving possibilities would remain same as usual. 60% had managed to save some money, and 73% believed they could continue saving over the next year.
September was viewed as unfavorable time for both borrowing and saving, with only 24% considering loans and 39% viewing saving as worthwhile. Despite it, loan intentions saw a slight rise, with 17% of consumers planning to take one out within a year, that is slightly more than usual.
See also:
Finnish Economic Outlook for 2023–2025
The full information and the source text can be found at Statistics Finland website.
Published 06.10.2024, FINREPO