Finnish consumer confidence hits four-year high in June

HELSINKI, June 29 (Xinhua) -- Consumer confidence in Finland rose in June to its highest level in more than four years, with the consumer confidence indicator climbing to minus 5.3 from minus 10.5 in May, its highest reading since February 2022, Statistics Finland said on Monday.

The improvement was mainly driven by stronger expectations for Finland's economy and, to a lesser extent, consumers' own economic outlook, according to the agency.

Expectations for the year ahead improved notably, especially regarding the national economy. More than a quarter of consumers expected the economy to improve, while around a third foresaw a deterioration.

Expectations concerning personal finances also brightened slightly, mainly because fewer consumers expected their situation to worsen.

"The rise in confidence was mainly based on improved expectations concerning Finland's economy. This was fairly evident, as the news has reported that export-driven economic growth in our country has finally begun," said Pertti Kangassalo, senior statistician at Statistics Finland.

He added that although expectations regarding personal finances had also improved somewhat, consumer confidence remained fairly weak overall.

Consumers' intentions to spend on durable goods over the next year increased slightly in June but remained modest. Thirteen percent of consumers expected to increase such spending, while 36 percent expected to reduce it.

Kangassalo said the change was likely due to accumulated purchasing needs and improved purchasing power, as savings had increased, wages had risen and taxation had eased for many people. However, he noted that weak labor market conditions, along with rising energy prices and interest rates, continued to weigh on consumers. Enditem