HELSINKI, March 27 (Xinhua) -- Consumer confidence in Finland weakened further in March 2026, falling to its lowest level in nearly two years, official data showed on Friday, while economists said rising uncertainty linked to the conflict in the Middle East had added to the gloom.
The consumer confidence indicator (CCI) stood at -11.5 in March, down from -10.5 in February and -8.7 in January. The reading was the weakest since April 2024, when the indicator stood at -12.6, said Statistics Finland.
According to the statistical agency, 28 percent of consumers said their personal financial situation was worse than a year earlier. Consumers also continued to regard the timing for major purchases as highly unfavorable. Only 15 percent said March was a favorable time to buy durable goods.
At the same time, views on the national economy deteriorated markedly. Some 71 percent of consumers said Finland's economy was weaker than a year earlier, while 46 percent expected the economy to worsen further.
Economists said the decline in sentiment partly reflected growing uncertainty caused by the ongoing tensions in the Middle East.
"It reflects not only general pessimism but also partly the initial stages of the impact of the ongoing conflict in the Middle East," Jukka Appelqvist, chief economist at the Finland Chamber of Commerce, said in a press release issued on Friday.
"From the current starting point, consumers' assessment of the development of the Finnish economy seems too gloomy, but if tensions in the Middle East drag on, it may become reality," Appelqvist noted.
A similar view was expressed by Petri Malinen, chief economist at the Federation of Finnish Enterprises, who said in a press release on Friday that U.S. and Israeli attacks on Iran threatened to slow the recovery of the entire eurozone, with the impact already being felt by Finnish companies.
Business confidence in Finland also weakened in March, according to the Confederation of Finnish Industries (EK), which said its manufacturing confidence indicator fell to -1 in March from +3 in February.
"The increased uncertainty in the economy due to the escalating situation in the Middle East is visible," EK's chief economist Penna Urrila said in a press release on Friday.
Earlier this week, the Bank of Finland lowered its growth forecast for 2026-2028, saying an energy shock caused by tensions in the Middle East was weakening the outlook.
Finland's economy is now expected to grow by 0.6 percent in 2026, down from the 0.8 percent forecast issued in December, according to the bank.
