Business confidence strengthened in November

Confidence in major sectors, except for retail trade, is on the rise.

Manufacturing confidence strengthened in November

In the manufacturing sector, the confidence indicator rose to -7 in November. In the previous month, confidence was at -12 points. However, confidence is still below the long-term average, which is 0.

Production is expected to grow rather slowly in the coming months. The order backlog improved but remained below the level considered normal in November. Finished goods inventories decreased to near average levels. Capacity utilization is at 59% among respondents, slightly higher than in October.

In Finland, manufacturing confidence in October was still somewhat weaker than the EU average.

Weak confidence in construction improved slightly

Confidence in the construction sector is still weak, but the confidence indicator has started to gradually strengthen. In November, the measured level was -24 points, compared to -30 in the previous month. The long-term average of the confidence indicator is -8.

The order backlog in construction improved slightly from the lowest levels but is still clearly below normal. Expectations for employment development in the construction sector remain modest.

According to October comparison figures, Finland’s construction confidence was still the weakest among EU countries.

Service sector confidence strengthened a bit

Confidence in the service sector was on a slight upward trend in November. The confidence indicator rose by two points to +4. The long-term average of the service sector indicator is +11.

The general economic situation has been described as still sluggish in recent months. However, sales have grown slightly, and a somewhat faster growth is forecast for the coming months.

In Finland, service sector confidence in October was the third weakest among EU countries.

Retail trade confidence nearly unchanged

The rise in the retail trade confidence indicator halted in November. The latest reading of the confidence indicator is -7 points, compared to -6 in the previous month. The long-term average is -2.

In retail trade, sales continued to decline, but at a slightly slower pace than before. However, sales expectations for the coming months are subdued. Inventories grew a bit and are slightly above the average level.

In Finland, retail trade confidence in October was somewhat weaker than the EU average.