FX.co ★ Finland's Consumer Confidence Remains Negative; Business Morale Weakens

Consumer confidence in Finland stayed low in March, despite a minor rise from the previous month, according to survey figures presented by Statistics Finland. Simultaneously, data from the Confederation of Finnish Industries disclosed a further dip in industrial sentiment in March.

The consumer confidence index displayed a minor increase to -9.4 in March, up from -9.5 in February. However, this score remains substantially below the long-term average of -2.4. The data, gathered from 1,229 participants between March 1-18, shows a slight improvement in households' perception of their current economic situation from the previous month, even as expectations for their economic future deteriorated. Notably, expectations for Finland's economy remained stagnant.

Purchase intentions remained notably low, with households continuing to view the current climate as particularly unfavorable for buying durable goods. Notably, intentions to purchase new property also continued to decrease in March. Among these households, concerns regarding price inflation for consumers dropped slightly within a year's timeframe. However, these concerns were still relatively high.

Predictions concerning nationwide unemployment rates remain pessimistic, as 57% of consumers expect unemployment to increase. The industrial confidence index fell to -13 in March from -11 in February, as reported by the Federation of Finnish Industries. This confidence is significantly below the long-term average of +1.

In terms of main sectors, confidence in manufacturing deteriorated, while the construction sector experienced a boost in morale. Other sectors saw no significant changes. The survey anticipates a slight decline in production over the coming months while order backlogs continue to diminish.