Finland’s purchasing power is moving sharply in different directions across income groups, with the lowest-income households facing another decline in 2026 while the highest earners are expected to gain ground, according to new analysis by the Labour Institute for Economic Research (Labore).
Purchasing power among the lowest-income 10 per cent of households is projected to fall by 3.5 per cent this year, while the highest-income 10 per cent are expected to see a 2.2 per cent increase. Labore estimates that the gap in purchasing power growth between the two groups will exceed 16 percentage points over the 2023-2026 period.
The figures point to an uneven recovery in household finances. While higher-income households are retaining or improving their ability to spend, those at the bottom of the income distribution continue to lose ground. Renters and single-parent households are among those facing particularly weak developments.
“Purchasing power among the lowest income households has deteriorated for several years, and that trend won’t reverse in 2026,” Labore senior researcher Milla Nyyssola said. She attributed the growing divide primarily to differences in income development rather than differences in price changes.
Labore said the continued deterioration among the lowest-income households is unusual compared with previous economic cycles in Finland. The pattern suggests that an improvement in the broader economy does not necessarily translate into stronger purchasing power for all households at the same time.
The findings come as Finnish consumers have also become more cautious about the economic outlook. Statistics Finland’s consumer confidence indicator fell to -4.9 in September, down from -3.0 in August. Although confidence remained above the -6.6 recorded in September 2025, it was still below the long-term average of -2.9 calculated from data collected since 1995.
The September consumer confidence survey was conducted between 1 and 17 September and included 1,157 people living in Finland.
Households reported a less positive view of their own finances as well as the wider economy. Twenty-eight per cent of respondents said their household finances had deteriorated compared with a year earlier, while 25 per cent said their financial situation had improved.
Views of Finland’s economy were weaker still. Half of those surveyed believed the country’s economic situation had worsened over the previous year, compared with 18 per cent who thought it had improved.
The decline was not limited to Finland. Statistics Finland senior actuary Pertti Kangassalo said consumer confidence had also weakened across the European Union. He noted that the coming months would show whether the September decline was temporary or marked a wider interruption in the recovery of consumer sentiment.
Employment remains another source of concern. Forty-four per cent of respondents expected unemployment in Finland to rise over the next 12 months, while only 25 per cent expected it to fall. Among people currently in work, 27 per cent said they believed their own risk of unemployment or temporary lay-off had increased.
That caution is also visible in household spending plans. Only 15 per cent of consumers considered September a favourable time to make expensive purchases. More than a third, 37 per cent, said they planned to reduce spending on durable goods over the coming year, while just 13 per cent expected to increase such spending.
Cars were a notable exception. Seventeen per cent of respondents said they definitely or possibly planned to purchase a car within the next 12 months, the highest level recorded since 2021.
Plans to borrow also became more common, despite the generally negative assessment of the current lending environment. Nineteen per cent of respondents said they intended to take out a loan during the coming year.
Housing-related plans remained present as well. Twelve per cent said they were considering buying a home or building one, while 17 per cent planned to carry out renovations.
Taken together, the figures show a Finnish economy in which household sentiment and purchasing power are not moving uniformly. For some households, particularly those with higher incomes, spending capacity is improving. For others, years of weaker income development continue to weigh on their ability to keep up with everyday costs.
The contrast matters because consumer spending depends not only on how prices develop, but also on how income is distributed and how secure households feel about their finances and employment. The September confidence figures suggest that many consumers remain cautious, even as some indicators have improved from a year earlier.
