People's views of their personal finances and the national economy have improved in June compared to May, according to Statistics Finland's consumer confidence indicator.
Compared to a year ago, the differences were negligible, though.
The consumer confidence index rose to -7.6 in June, up from -10.3 in May and -12.6 in April. The June reading is the highest since February 2022, when Russia began its full-scale invasion of Ukraine. The index’s long-term average is -2.5.
People's assessment of the current state of their own finances remained at a very low level, with few expressing intentions to spend money on durable goods or non-essential consumption.
However, there was a significant rise in the number of people saying they intended to buy a home. Some 15 percent said they were considering buying an apartment or building a house.
The information is based on a Statistics Finland survey of approximately 1,100 residents of Finland during the first three weeks of June.
The national statistics agency also said the decline in prices of older apartments had clearly levelled off during the first half of the year. Prices fell by 2.8 percent in the whole country in May compared to a year earlier.
According to senior statistician Anu Rämö, this was the smallest decline in more than a year and a half. However, in the capital region, the drop in prices from a year ago was greater than the national average in May.
"It’s about time"
According to the Confederation of Finnish Industries (EK), business confidence was on the rise in June. Of the main business sectors, heavy industry was the only one showing a decrease in confidence.
"There is a very high probability that corporate confidence has now bottomed out," EK director Sami Pakarinen said in a press release.
"It’s about time," he added, noting that since the decline in confidence began in late 2021.
He said the situation is still difficult in some industries, such as construction, adding that there are signs that the worst may be over. In the services sector, sales perked up slightly this month compared to May.
"In industry, there are expectations that growth will begin, and the strengthening of purchasing power in services and trade is starting to support demand," said Pakarinen.
Still, the business lobby expects industrial production to keep decreasing slightly over the next few months.
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