Business Confidence Indicators mostly continued to rise

Business confidence in Finland strengthened further in September.

Confidence in manufacturing continued to improve in September

The industrial confidence indicator rose again in September. Its latest balance figure is +3, compared to -1 in the previous month’s survey. Confidence has now strengthened slightly above the long-term average level (0 points).

Production expectations have remained positive, and a clear increase in output is expected to continue in the coming months. The order backlog has started to improve, though it is still below normal levels. Stocks of finished goods remained close to their usual level. Capacity utilization improved: in September, 68% of respondents reported their capacity to be fully utilized (compared with 63% in August).

In Finland, industrial confidence in August was slightly above the EU average.

Construction confidence strengthened, but remains low

Confidence in the construction sector improved in September, but the level of the confidence indicator is still rather low. The September balance figure was -21, compared to -27 in August. Despite the improvement, confidence remains weaker than the long-term average (-9 points).

Order books in construction companies grew, but they are still clearly below normal levels. Employment expectations for the coming months remain slightly negative.

In August, confidence among Finnish construction companies was the weakest in the EU.

Service sector confidence showed little change

Confidence in private service sectors remained fairly stable in September. The latest balance figure was +3, compared to the revised figure of +5 in the previous month. The long-term average for the time series is +11.

The general business outlook was considered to have weakened slightly after the summer. However, sales have continued to grow modestly, and are expected to keep rising in the coming months.

In Finland, service sector confidence in August was close to the EU average.

Retail trade confidence turned upwards

Confidence in retail trade turned upwards in September. The latest balance figure was +7, compared to +2 in August. The long-term average of the indicator is -2.

Retail sales returned to growth, and for the coming months a moderate increase in sales volumes is expected. Stock levels remained broadly unchanged, close to the average level.

In August, Finland’s retail trade confidence indicator stood slightly above the EU average.