Consumer confidence took a tumble in October, falling to its lowest level in two years. Statistics Finland said the consumer confidence indicator fell from 20.2 in September to 16.8 in October. The last time the indicator stood this low was in October 2016.
The long-term average for consumer confidence is 12.6.
While expectations concerning Finland’s economy and unemployment rate weakened clearly over the month, consumers’ views on their own financial situations and saving possibilities remained good, the agency said.
Brotherus: Slower growth ahead
Meanwhile, industrial confidence remained largely unchanged, standing at 9 points in October, down from 10 points in the previous month, the Confederation of Finnish Industries (CFI) said.
Within the indicator, confidence in the construction and service sectors fell but retail trade confidence lingered at roughly the same level as in September, CFI’s figures showed.
Chief economist Juhana Brotherus from the Mortgage Society of Finland predicted that the economic growth in Finland will slow down to a more moderate rate.
“Falling consumer confidence combined with decreasing share prices and political uncertainty raises concerns. During October, the Helsinki Stock Exchange general index lost 10 percent of its value,” Brotherus noted.
Nevertheless, the economic indicators still stand above their long-term averages, he added.