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Consumer confidence continues to fall

Consumer confidence in the economy has weakened further as recovery stalls.

Ihmisiä torikahvilassa Hakaniemen torilla.
Consumers' views concerning their personal economy and also on spending money on durable goods improved slightly in October, Image: Tiina Jutila / Yle
  • Yle News

Private confidence in prospects for the Finnish economy has shown a further decline this month, while companies say that they expect the remainder of the autumn to be difficult, according to Statistics Finland's latest report.

The consumer confidence indicator for October stood at -6.9, compared to -5.9 in September and -5.1 in August.

Consumers' views concerning their personal economy and also on spending money on durable goods within one year did both improve slightly in October, though.

Meanwhile consumer expectations concerning Finland's economy overall in the near future still weakened clearly.

Statistics Finland found that consumers generally see their own own financial situation as excellent, with the timing favourable for saving, but not for the purchase of durables or borrowing.

Even so, increasing numbers of people said they were about to take out a loan, with plenty planning to buy or renovate homes, or buy a car.

Economic recovery stalled

Finnish companies estimate that the economic cycle will remain difficult this autumn, according to the Confederation of Finnish Industries EK. Companies say that the gradual economic recovery seen over the summer months has stalled and economic expectations have fallen sharply since then.

"The acceleration of the coronavirus in both Europe and Finland is already reflected in the weakening of the service sector again. The economic outlook for the service sector has darkened rapidly, as it has for the entire business community," says EK's chief economist Sami Pakarinen in a press release.

According to Pakarinen, the situation in industries is bleaker than in the spring. The situation is even more difficult because at the same time there are now problems in construction and manufacturing.

“The situation in the industrial sector remains difficult, but there is also a hint of improvement in the economic outlook. The big question is whether the Finnish export sector will catch up with the growth that has started in European industries, and how fast,” Pakarinen pointed out.