Business Confidence Continues to Strengthen

Business confidence in Finland strengthened in June. Improvements were seen especially in services and retail, as well as in the construction sector, which remains at a low level. Confidence in manufacturing remained unchanged from the previous month.

Confidence in manufacturing stayed at the previous month’s level in June, with a balance figure of +4. The confidence indicator remains slightly above its long-term average (0).

Production expectations for the coming months are on an upward trend. Order books improved slightly from May and were close to the long-term average. Stocks of finished goods increased. Capacity utilization rose, and in June, 66% of companies reported operating at full capacity.

In May, confidence among Finnish manufacturing companies was clearly above the EU average.

Construction Confidence on the Rise

Confidence in construction improved slightly. The balance figure stood at -17 in June, compared with -20 in May. Despite the improvement, confidence remains clearly below the long-term average (-9).

Order books in construction companies remained unchanged at a low level. Expectations regarding staffing levels for the coming months rose to a neutral level.

In May, confidence in the Finnish construction sector was clearly below the EU average.

Services Confidence Strengthened

The services confidence indicator improved in June. The latest balance figure is +6, up from the revised +3 in May. Confidence remains slightly below the long-term average (+11).

The negative tone of the business cycle eased compared to the previous month. Sales increased slightly, and expectations for the coming months are cautiously positive.

In May, confidence among Finnish service companies was slightly below the EU average.

Slight Improvement in Retail Trade

Confidence in retail trade strengthened somewhat. In June, the balance figure was +12, compared with +10 in the previous month. The confidence indicator is above its long-term average (-2).

Retail sales increased in June, and expectations for the coming months are also positive. Inventories grew.

In May, confidence in Finnish retail trade was clearly above the EU average.