HELSINKI, Dec. 29 (Xinhua) -- Consumer confidence in Finland remained subdued in December, with households still reluctant to make major purchases, Statistics Finland said on Monday.
The balance figure of the consumer confidence indicator fell to minus 7.3 in December from minus 6.5 in November, the statistical agency said in a press release. This compared with minus 8.6 a year earlier, while the indicator's long-term average stands at minus 2.8.
Spending intentions for durable goods remained particularly weak. Consumers continued to view the timing as highly unfavorable for buying big-ticket items, and intentions to spend on durables over the next 12 months weakened further. Only 10 percent of respondents expected to increase spending on durable goods, while 42 percent anticipated cutting it.
"This is worrying for much-needed economic growth, given that about half of gross domestic product (GDP) comes from private consumption," senior statistician Pertti Kangassalo said in the release.
Sentiment regarding personal finances was mixed. In December, 29 percent of consumers said they expected their financial situation to improve over the next year, while 17 percent believed it would deteriorate. Labor market expectations remained bleak, with 55 percent estimating that unemployment would rise. Finland's unemployment rate stood at 10.6 percent, according to the latest figures from Statistics Finland.
Views of the broader economy were unchanged and muted. Some 21 percent of consumers expected the national economy to improve over the next year, while 38 percent said they believed Finland would enter a recession.
Kangassalo traced the deterioration in sentiment back to early 2022, adding that confidence edged up afterward but has remained "surprisingly and persistently" low. He noted signs of slightly greater optimism about households' own finances, saying many people have accumulated savings by holding back on spending and borrowing.
A similar note of cautious optimism was struck by Jukka Appelqvist, chief economist at the Finland Chamber of Commerce. In a separate press release issued Monday, Appelqvist described Finland's economic performance in 2025 as a "defensive victory," saying that while growth remained sluggish, the worst threats were avoided. He also criticized what he called "excessive pessimism" about the near-term outlook, citing improving household purchasing power and a more promising global economic environment.
Still, official forecasts point to a fragile recovery. Finland's Ministry of Finance has warned that weak domestic demand continues to weigh on growth and that public finances remain under pressure. In its latest Economic Survey, the ministry cut its 2025 GDP growth forecast to 0.2 percent from 1 percent projected in September, and forecast GDP growth of 1.1 percent in 2026 and 1.7 percent in 2027.
