Business Confidence Strengthening


Overall, business confidence was on the rise in June. Among the main industries, confidence in manufacturing showed a decline, while other sectors were on an upward trend.

Confidence Indicators June 2024

Last updated

Source: EK (Macrobond)

Confidence in manufacturing declining

The manufacturing confidence indicator was -15 in June, down two points from the previous month. The indicator is still well below the long-term average, which is +1.

Production is expected to decrease slightly in the coming months. Order books thinned in June. Inventories of finished goods decreased slightly from the previous month but are still above the normal level. Full capacity utilization was at 54% of companies, which is a slightly smaller share than last month.

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

Construction confidence improved

In June, the construction confidence indicator rose to -37, two points higher than in May. The long-term average is -8.

Order books contracted slightly from the previous month and are still well below the normal level. Expectations for the number of personnel in the construction sector remained bleak.

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

Confidence in the service sector rose

In June, the confidence indicator for the service sector rose by six points. The balance figure was 0, whereas the revised figure for May was -6. The long-term average for the service sector indicator is +11.

The economic situation has been challenging in recent months, but sales increased slightly compared to the previous month. Sales expectations are positive, albeit slightly better than in May.

In Finland, the confidence in the service sector was the third weakest in the EU in May.

Retail confidence in clear rise

In retail, confidence rose in June from the previous month to a figure of -9. This is 10 points more than the confidence figure for May. The long-term average is -2.

Retail sales have contracted compared to previous months. The sales forecast for the coming months is still weak, but clearly better than last month. Inventories decreased from the previous month’s level, but are still below the level considered normal.

In May, retail confidence was the third weakest in the EU countries.

The data