Business confidence in decline


Business Confidence Indicators were released on 27th of April.

Confidence Indicators April 2023

Last updated

Source: Source: EK (Macrobond)

Confidence in manufacturing fell

In manufacturing, confidence fell by one point in April. The latest balance reading was -13, compared to -12 the previous month. The long-term average  is +1.

Production is expected to decrease in the coming months and order backlogs have continued to thin out.  The stock of  products is clearly higher than the normal level, but slightly lower than in the previous month. At the same time, 63% of enterprises are in full capacity, which is slightly higher than last month.

In Finland, industrial confidence was the second weakest in the EU countries in  March.

Confidence in construction fell clearly

In April, construction confidence fell 10 points from the previous month. The balance figure was -28, while in March the balance figure was -18.  The long-term average is -7.

The order backlog contracted from the previous month and is still clearly below the level considered normal.  Expectations regarding the number of personnel in the construction sector continued to weaken.

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

Confidence in services fell slightly

Confidence in services fell to the balance figure 4 in April.  This was a point  less than the revised figure in March. The long-term average for the service sector is +12.

The economic picture has remained negative in recent months . Despite the negative picture, sales  have increased compared to previous months and sales expectations are still rising.

In Finland, confidence in services was slightly below the average for EU countries in March.

Retail confidence rose

In retail, confidence rose to -5 in April. The  balance figure was four points more than in the previous month, when the balance figure was -9.  The long-term average is -1.

In retail trade, sales have remained unchanged compared to previous months.  The expectation for the coming months has turned to cautious growth.  Stocks have reached levels close to  the previous month’s level.

Retail confidence was  slightly below the EU average in March.