Consumer confidence in Finland reached its highest level in more than four years in June, while business sentiment also improved across most sectors, pointing to a gradual recovery in the country’s economy.
New figures from Statistics Finland showed the consumer confidence indicator rose to -5.3 in June from -10.5 in May. Although the reading remained below its long-term average of -2.9, it marked the strongest result since February 2022.
The survey found that households became more optimistic about both their own finances and the outlook for the national economy over the next year. Expectations for both returned to their long-term average after months of weak sentiment.
Consumers remained cautious about current economic conditions.
Twenty-eight per cent said their personal financial situation was worse than a year earlier, while 25 per cent reported an improvement. Nearly six in ten respondents still believed Finland’s economy was weaker than it had been a year ago, although that share declined from previous months.
Looking ahead, 27 per cent expected the Finnish economy to improve during the next 12 months, while 33 per cent anticipated further deterioration. More than one quarter also expected their own financial situation to improve, compared with 16 per cent who expected it to weaken.
Confidence varied across the country.
Greater Helsinki recorded the strongest level of consumer confidence, with the indicator returning to positive territory at 0.1. Eastern Finland recorded the weakest reading at -9.5.
Among different groups, upper-level salaried employees and self-employed people reported the strongest confidence, while unemployed respondents remained the most pessimistic.
Despite the improved outlook, consumers continued to view the present as a poor time to make expensive purchases. Only 15 per cent considered conditions favourable for buying durable goods.
Although expectations for nationwide unemployment improved, almost half of respondents still expected unemployment to increase over the next year. Among employed people, more than one quarter believed their personal risk of unemployment or temporary lay-offs had increased.
Business confidence also strengthened during June.
The Confederation of Finnish Industries (EK) reported stronger confidence in services, retail trade and construction, while manufacturing confidence remained unchanged.
Construction confidence increased from -20 to -17, although it remained well below its long-term average. The services sector’s confidence indicator rose from 3 to 6.
The retail trade confidence increased to 12 from 10 in May, placing it well above the long-term average.
The latest consumer survey was based on responses from 1,197 people collected between 1 and 17 June.
HT