Finnish Consumers Upbeat About Economy, Jobs

Consumers continue to be optimistic about the national economy, according to new data from Statistics Finland.

According to the latest indicators, consumer confidence in the economy weakened slightly between June and July. However the index remained relatively strong at 22 compared to 23 in June and to the long-term average of 12.5, Yle reported.

Meanwhile consumer expectations for unemployment improved in July compared to the previous month, with respondents to the monthly survey saying they were very upbeat about the prospects. Respondents were somewhat tepid about their personal as well as public finances and their potential for saving, but overall the outlook remained positive.

Overall, a belief that unemployment would shrink was also stronger than the same time last year. The monthly survey by Statistics Finland interviewed around 1,000 residents of Finland at the beginning of July.

Corporate confidence in the economy also remained high in July, according to the business lobby group EK.

Confidence among industrial sector firms remained steady from June to July at 14. In the service sector, the index crept up to 20 from 18 in June while confidence also rose among companies in the retail sector.

Overall confidence among industrials in Finland was higher than the European average in July. The EK’s confidence indicator described companies’ view of the business environment at the time of the survey.

Head economist Juhana Brotherus of specialized mortgage lender Suomen Hypoteekkiyhdistys said in a release that the slight waning of consumer confidence in July was not unexpected.

He said a similar development had already occurred throughout the eurozone and the US, adding that a period of rapid growth has now passed.