Cash flow in private consumption has slowed in recent months, as consumers exercise more caution in their spending.
This comes after previous studies suggesting that consumer confidence was starting to grow again after the recession.
Previous Surveys Indicate Rising Consumer Confidence
The consumer barometer published by Statistics Finland in October, suggested that consumer confidence was nearly back to the long-term average, and significantly higher than a year earlier.
The latest information would seem to indicate the opposite.
“Finns are living in a conflicting situation,” explained Juho Rahkonen, head of research at Taloustutkimus.
“On the one hand, consumers have confidence in economic development, but they aren’t taking out their credit cards yet. People are putting more of their money into savings, instead of spending on products and services.”
Studies Measure Different Variables
Both the Taloustutkimus and Statistics Finland studies were conducted in the same manner – by interviewing a representative sampling of the Finnish population. However, they measure slightly different variables.
The Statistics Finland consumer barometer measures consumers’ expectations about upcoming development in their own finances and the country’s economy.
The YLE-Taloustutkimus study asked respondents what they have actually spent their money on in recent times.