Business confidence on a gentle upward trend

Business confidence saw a slight overall increase in June. There was a modest improvement in manufacturing and services, while confidence in construction and retail declined.

Manufacturing Confidence Strengthened in June

The manufacturing confidence indicator rose to –9 in June, compared to –11 in the May survey. Confidence remained weaker than the long-term average of 0.

Production expectations have recovered, and output is expected to increase slightly in the coming months. The order book remained clearly below its normal level. Inventories of finished goods decreased from the previous month, moving closer to typical levels. Production capacity was still fairly underutilized, with only 58% of respondents reporting full capacity usage.

In May, manufacturing confidence in Finland remained below the EU average.

Construction Confidence Weakened Slightly

Construction confidence declined in June, with the confidence indicator falling to –33. In May, the corresponding balance figure was –30. Confidence remains well below the long-term average of –9.

Order books in the construction sector are significantly thinner than normal, and the number of employees is expected to decline in the coming months.

In May, construction sector confidence in Finland was the weakest among EU countries.

Service Sector Confidence Up by One Point

Confidence in private services strengthened slightly in June. The latest balance figure for the indicator was +4, up from +3 in the previous month. The long-term average of the confidence indicator is +11.

General economic conditions were still seen as subdued at the start of the summer. While actual sales growth has picked up, expectations for the coming months are slightly weaker than in the previous month.

In May, service sector confidence in Finland was only slightly below the EU average.

Retail Trade Confidence on a Downward Trend

Retail trade confidence weakened in June after a few months of growth. The latest balance figure for the indicator was +6, down from +8 in May. The long-term average for the indicator is –2.

Retail sales growth slowed slightly, and expectations for the coming months were more cautious than in the previous month. Inventories decreased to near-average levels.

In May, Finland’s retail trade confidence indicator was clearly above the EU average.

Data