Business Confidence Continued to Improve

Economic confidence in Finland’s business sector continued to strengthen in July. The improvement was particularly pronounced in construction, where the starting level had been low. Confidence indicators in other sectors also remained on an upward trend.

Manufacturing Confidence Indicator Continues to Rise

Confidence in the manufacturing sector strengthened in July, with the confidence indicator increasing to +7 from +4 in the previous month. Confidence is now somewhat above its long-term average (0).

Production expectations for the coming months are positive, and output volumes are forecast to increase. Order books remained stable compared with the previous month and are described as being close to their long-term average. Inventories of finished goods declined to an average level. Capacity utilization increased, and 68% of companies reported operating at full capacity.

According to comparative data collected in June, confidence among Finnish manufacturing companies was clearly above the EU average.

Construction Confidence Improved Significantly

Confidence in the construction sector improved markedly in July. The confidence indicator strengthened to -5, compared with -17 in June. In the July survey, confidence rose to slightly above its long-term average (-9).

Order books in construction companies improved significantly in July from a low starting point. Employment levels are expected to remain unchanged in the coming months.

In June, Finland’s construction confidence indicator remained below the EU average.

Services Confidence Increased Slightly

The services confidence indicator edged up in July. The latest balance figure stands at +7, compared with +6 in June. Confidence remains slightly below its long-term average (+11).

Business conditions have been described as fairly stable in recent months. Sales have grown moderately, and cautious growth is also expected in the months ahead.

According to comparative data collected in June, confidence among Finnish service companies was slightly weaker than the EU average.

Retail Trade Confidence Remains Stable

Confidence in the retail trade sector remained stable in July. The balance figure stood at +12, unchanged from June. The confidence indicator is above its long-term average (-2).

Retail sales generally increased in July, and expectations for the coming months remain positive. Inventories increased somewhat.

In June, confidence in Finland’s retail trade sector was clearly above the EU average.