Business confidence remains uneven in December

Overall business confidence in Finland edged up slightly in December. However, differences between sectors remained significant.

Manufacturing confidence indicator strengthened

The manufacturing confidence indicator turned upward in December. The latest balance figure stands at 0, compared with –6 in the November survey. Confidence thus returned to its long-term average level (0).

Production expectations have improved, and output is expected to increase in the coming months. Order books have strengthened but remain below average. Stocks of finished goods stayed slightly above their average level. Capacity utilisation remained stable but low. In December, 63% of respondents reported operating at full capacity (62% in November).

In November, manufacturing confidence in Finland was slightly below the EU average.

Construction confidence remained weak

Confidence in construction stayed at a low level in December. The latest reading of the confidence indicator is –28, down from –23 in November. Confidence is clearly weaker than the long-term average (–9).

According to construction companies, order books remain very low. Employment expectations for the coming months are also subdued, and employment may still decline further.

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

Confidence in service sector declined

Confidence in private service industries weakened in December. The latest balance figure for the confidence indicator is 0, compared with +6 in November. The long-term average of the series is +11.

Overall business conditions are assessed to have been modest in recent months. However, sales have continued to grow slowly, and growth is expected to accelerate somewhat in the coming months.

In November, services confidence in Finland was slightly below the EU average.

Retail trade confidence edged down slightly

Confidence in retail trade weakened marginally in December. The confidence indicator fell to a balance of 0, from +4 in November. The long-term average of the indicator is –2.

Retail sales increased slightly in December, and growth expectations for the coming months remain cautious. Inventories were almost unchanged and stood slightly above average.

In November, Finland’s retail trade confidence indicator was close to the EU average.