Finnish consumers are spending less than their Nordic counterparts, says Nordea

CONSUMER SPENDING cooled down across the Nordics in June, indicate card payment statistics compiled by Nordea and reported by Helsingin Sanomat. Finland recorded the most dramatic decline both in terms of the nominal value and inflation-adjusted valu

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Jul 27 2024
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Finnish consumers are spending

CONSUMER SPENDING cooled down across the Nordics in June, indicate card payment statistics compiled by Nordea and reported by Helsingin Sanomat.

Finland recorded the most dramatic decline both in terms of the nominal value and inflation-adjusted value of card payments, with both falling by roughly four per cent from June 2023. The nominal value of card payments stayed close to the previous year in Denmark, Norway and Sweden.

Card payments for goods began to decline after a fairly promising May, according to an analysis by the financial services provider. Also card payments for services fell in each of the four countries. Payments for non-food purchases fell in each of the countries except for Denmark and payments for health care services in each of the countries except for Norway.

Payments for leisure and sporting equipment declined in Finland and Sweden but increased in Denmark and Norway.

Finland stood out from its peers also with a roughly 10-per-cent drop in card payments made at beauty and hair salons. Norway, in turn, was the only one of the four countries to record an increase in card payments at restaurants, with the other three seeing no change in the payments from the previous year.

The inflation-adjusted value of card payments for cultural services jumped by more than 10 per cent in Norway but fell by 20 per cent in Finland. Card payments for other entertainment services rose across the Nordics.

Also spending on accommodation services increased in June, led by Norway.

Card payments for fuels grew in real terms only in Sweden. The nominal value of fuel payments, however, fell across the region. The real value of card payments for public transport services increased in Finland and Norway but decreased in Denmark and Sweden.

Nordea keeps track of transactions made with its cards because it believes the transaction data mirror consumer spending in different countries almost in real time. It reminded in its analysis, though, that the analysis can be complicated by changes in consumer habits and payment method preferences.

The statistics comprise payments made by both individual and enterprise customers but not payments made abroad.

Aleksi Teivainen – HT