Business confidence continued to fall


Of the main industries, confidence did not weaken only in services, in construction confidence fell clearly.

Confidence Indicators July 2023

Last updated

Source: EK (Macrobond)

Manufacturing confidence fell

In manufacturing, confidence dropped three points in July. The latest balance reading was -20, which is three points less than the previous month’s revised reading. The confidence is still below the long-term average, which is +1.

Production is expected to decrease in the coming months and order backlogs have continued to thin. Inventories of finished products are clearly higher than normal. At the same time, only 56% of enterprises had capacity at full capacity, which is two percentage points lower than last month.

In June, manufacturing confidence in Finland was still clearly weaker than the EU average.

Confidence in construction in a clear slide

In July, the balance figure describing confidence in construction fell to -34. The balance figure was 8 points lower than in June. The long-term average is -7.

The order backlog decreased clearly from the previous month, and is far below the level considered normal. Expectations regarding the number of employees in the construction sector have remained weak.

Among EU countries, confidence in construction was second weakest in Finland in June.

Confidence in services remained unchanged

As in June, the balance figure for services was 0 in July. The long-term average for the service sector indicator is +12.

The economic outlook has remained negative in recent months. Despite the weak economic outlook, sales have increased compared to previous months. Sales expectations also remain positive.

In Finland, confidence in services was below the EU average in June.

Retail confidence in a downward mood

In retail trade, confidence dropped to -15 in July. The balance figure was five points lower than in the previous month. The long-term average is -1.

In retail trade, sales have increased only slightly compared to previous months. Sales expectations for the coming months, on the other hand, have taken a clearer downturn. Inventories increased from the previous month.

Retail trade confidence was slightly weaker in June than the EU average.

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