Business confidence continued to rise

Business confidence was on the rise in July across all main sectors except retail.

Confidence in manufacturing rose

In manufacturing, the balance reading measuring confidence was -12 in July. Confidence rose two points from the previous month’s revised level. The Confidence Indicator is still clearly below its long-term average, which is +1.

Production is expected to increase slightly in the coming months. Order backlogs improved in July, but are still below the level considered normal. Inventories of finished products increased slightly from the previous month and are above the normal level. Capacity is fully utilised by 59% of companies, which is slightly higher than last month.

In June, industrial confidence in Finland was the third weakest among EU countries.

Upward confidence in construction

In July, the balance figure describing confidence in construction rose to -34. The balance figure was two points higher than the revised figure for June. The long-term average is -8.

The order backlog remained close to the previous month’s level and is still clearly below the level considered normal. Expectations regarding the number of employees in the construction sector remained weak, but were slightly better than last month.

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

Confidence in services increased

Confidence in services rose by one point in July. The balance figure measuring trust was +1. The long-term average for the service sector indicator is +11.

Economic development has continued to be somewhat challenging in recent months. However, sales increased compared to the previous month. Sales expectations are also positive, but slightly more subdued than in June.

In June, confidence in services in Finland was the third weakest among all EU countries.

Retail confidence declining

In retail trade, confidence fell in July from the previous month to -12. This is three points less than the confidence reading for June. The long-term average is -2.

In retail trade, sales have contracted even further compared to previous months. Sales expectations for the coming months are weak. Inventories remained close to the previous month’s level and are still below the level considered normal.

Retail trade confidence was the fourth weakest among EU countries in June.