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He said consumers’ views on their financial situations improved slightly in August compared with July and a year ago. Statistics Finland.
However, the assessment of the current economic situation in the country remains at a very weak level. Expectations for myself and the Finnish economy are low.
According to Statistics Finland, many people do not think it is a good time to buy durable goods. Few people plan to buy a house.
– The biggest obstacle to the real estate market is the concerns about job stability caused by the rising unemployment rate. On the other hand, economists at Suomen Yrittäjie said that the recent recovery of confidence, the increase in purchasing power and the accumulation of housing exchange demand will inevitably be reflected in the warming of the housing market over time. Rupe Ohlsbom In his analysis.
The Consumer Confidence Index was -7.2 in August, compared to -8.0 in the same period last year. The reading was unchanged compared to July. The long-term average is -2.5.
Low inflation and falling mortgage rates appear to be boosting consumer confidence, Olsbom said.
– Consumers’ perceptions, especially about their own financial situations, improved significantly over the summer.
“The VAT increase has had an impact on businesses”
Confederation of Finnish Business According to (EK), business confidence was also at a weak level in August. In particular, retail confidence fell, with the confidence index at -18, compared with a revised reading of -11 in July.
The construction reading also weakened. The latest reading was -37, 3 points lower than in July.
– Business confidence has yet to start to strengthen more broadly. The positive side is that the industry has clearly overlooked the bottom of the wave and confidence has continued to rise throughout the summer, said EK’s chief economist. Pen screams In the announcement.
In the industrial sector, confidence strengthened slightly, the EK said. The confidence index stood at -8 in August, compared with a revised 3 percentage point drop in July.
– Economic confidence in Finland remains one of the weakest in the EU. Urila said that although there have been some signs of improvement, we still need to wait for a stronger economic recovery.
Haibo Chief Economist Juho Keskinen Growth data at the start of the year suggested the recession was over, but economic growth was weak.
– The VAT increase will also hit businesses from the beginning of September, as consumers adjust their consumption and businesses try to pass on the tax increase to product and service prices. However, at the same time, the increase in consumer income levels exceeds the overall increase in cost levels, which supports economic growth, despite administrative inflation caused by the tax increase, Keskinen evaluate.
At the beginning of September, general VAT will increase from 24% to 25.5%.
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