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Fast Comment Finland2018 starts with record-high consumer confidence

  1. Consumer confidence rose to 24.2 in January
  2. Two components of the CCI improved m-o-m
  3. Intentions to buy durable goods are finally improving
Consumer confidence rose to 24.2 in January
Finland's consumer confidence indicator (CCI) rose to a new high of 24.2 in January, following a reading of 24.0 in December. Consumer sentiment has been high for a year. A year ago in January, the CCI stood at 21.0. The confidence indicator’s long-term average is 12.3.
Two components of the CCI improved m-o-m
Of the four components of the CCI, consumers' expectations of their own economies and unemployment in Finland improved compared to previous month. However, consumers' views of Finland's economy and households' expectations of saving possibilities weakened slightly m-o-m in January. Apart from saving possibilities, all other components improved y-o-y.
Intentions to buy durable goods are finally improving
Consumer confidence recorded a new high in January. Consumer sentiment has been high (over 20) for a year and the previous high of 24.1 was reached in May last year. Sub-indices of the CCI reveal that consumers are exceptionally confident about Finland’s economy and benign unemployment in Finland. However, consumers see Finland’s current economic situation more positively than the economy in 12 months’ time. The regular positive newsflow about the Finnish economy, enhanced employment and low interest rates are obviously among the factors supporting the strong consumer sentiment. So far, the high confidence has not fully translated into consumer spending, as the growth in retail sales in Finland has continued to stay moderate. However, January's survey suggests that households' spending intentions for durable goods are increasing. Thus, we expect private consumption growth to continue to be robust in the beginning of 2018.

 

 


 




Disclaimer

Janne Ronkanen

Senior Economist

Finland

jaro06@handelsbanken.se

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