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Consumer confidence in Finland crashes to historic low in June

Inflation continues to be a pressing worry for many consumers, who do not view the trend as slowing down any time soon.

Inflation was perceived to be at an all time high by consumers, who refrained from durable goods purchases in June. Image: Henrietta Hassinen / Yle

Consumer confidence hit its lowest level in June since the survey began in 1995, according to the latest survey by Statistics Finland.

Expectations of one's own and Finland's economy in a year were quite dire, the most pessimistic in the survey's history. Respondents to the survey assessed that their own finances would be weak in a year.

There were very few intentions to spend money on durable goods in June, with purchasing considered the least advantageous ever.

Estimates and expectations of inflations rose even further. Expectations for inflation in a year were higher in June than at any other point in the measurement's history.

Inflation has been pulling the purse strings of Finnish household, particularly in regards to food prices which have been exacerbated by the war in Ukraine.

Despite the gloomy outlook, respondents said that their current financial situations were still good in June and they did not fear the threat of unemployment or layoffs.

Confidence in the business community also continued to slump in June, according to the Confederation of Finnish Industries (EK). EK director Sami Pakarinen pointed out that June was the fourth consecutive month of decline in business confidence.

Only businesses in the service sector saw their confidence indicator rise slightly in June. However, service companies estimated that their overall business climate has deteriorated further in recent months, despite an increase in sales volumes.