FX.co ★ Finland Consumers More Pessimistic In February, Business Morale Remains Negative

Consumer confidence in Finland continued to remain fragile in February, according to survey data from Statistics Finland released on Tuesday. Concurrently, the Confederation of Finnish Industries reported a persistently negative industrial sentiment for the same month, marginal improvements from January notwithstanding.

The Consumer Confidence Index (CCI) dropped slightly from -9.1 in January to -9.5 in February, a figure distinctly lower than the historical average of -2.4. The research involved a sample of 1,235 individuals and was carried out from February 1 to 18.

Households' assessment of their present economic situation deteriorated slightly compared to the previous month, while expectations for their personal and the overall Finnish economy over the next 12 months remained steady.

Household intentions to make substantial purchases remained extremely low, with the current times considered highly unfavorable for buying durable goods. Furthermore, the intention to buy property declined again in the following month.

The survey also revealed an unchanging and elevated level of household worries over consumer price inflation occurring over the next year. Similarly, pessimism dominated where unemployment forecasts were concerned, with 58% of consumers predicting an increase in inflation.

The Industrial Confidence Index, on the other hand, saw a minor rise to -11 in February compared to -12 in January, as reported by the Federation of Finnish Industries. However, the level of confidence remained considerably lower than the average historical score of +1.

Performance indicators across main industries remained low for the month of February. However, future production levels are expected to witness a slight increase, even as backlogged orders maintain their downward trajectory, according to the survey.