Finland money

Consumer confidence in Finland plummets to historic low in June | New

Inflation continues to be a pressing concern for many consumers, who don’t see the trend slowing down anytime soon.

Inflation was perceived to be at an all-time high by consumers, who refrained from buying durable goods in June. Image: Henrietta Hassinen / Yle

Consumer confidence hit its lowest level in June since the survey began in 1995, according to Statistics Finland’s latest survey.

Expectations for its and Finland’s economy a year from now were pretty dire, the most pessimistic in the survey’s history. Survey respondents estimated that their own finances would be low a year from now.

There were very few intentions to spend money on durable goods in June, with purchases seen as the worst value ever.

Inflation estimates and expectations have increased further. One-year inflation expectations were higher in June than at any other time in the history of the measure.

Inflation has pulled the purse strings of Finnish households, especially with regard to food prices which have been exacerbated by the war in Ukraine.

Despite the bleak outlook, respondents said their current financial situation was still good in June and they were not worried about the threat of unemployment or layoffs.

Business confidence also continued to plummet in June, according to the Confederation of Finnish Industries (EK). EK director Sami Pakarinen pointed out that June was the fourth consecutive month of declining business confidence.

Only businesses in the service sector saw their confidence indicator increase slightly in June. However, service companies believe that their general business climate has deteriorated further in recent months, despite an increase in sales volumes.