Consumer confidence splits sharply between Helsinki region and northern Finland

Finnish consumer confidence in the economy remains gloomy overall, though slightly brighter than a year ago, with sharp regional divides, according to Statistics Finland.

The confidence indicator stood at -5.3 nationwide in July. It was strongest in the Helsinki region at -1.2, and weakest in northern Finland at -10.6. The long-term average is -2.9, and the indicator last turned positive in 2022.

In July, 53 percent of consumers viewed Finland’s economic situation as weaker than a year earlier, down from 59 percent last year. Women’s outlook was significantly darker than men’s, with confidence indicators at -9.4 for women and -1.3 for men.

Plans to spend on durable goods fell by a few percentage points from both the previous month and the previous year. Only 11 percent of consumers expect to increase such spending in the next year, while 39 percent plan to reduce it.

Assessments of personal finances remained nearly unchanged from last year: 26 percent saw their situation as weaker, and 23 percent as stronger. Only 11 percent had plans to buy a home, slightly below the long-term average.

“Consumer intentions and home-buying plans likely won’t recover until the general mood improves, the labour market strengthens, interest rates fall, and fuel price trends stabilise,” said Pertti Kangassalo, senior statistician at Statistics Finland.