Business confidence turned downwards

With the exception of the manufacturing sector, all main industries experienced a decline.

Slight improvement in confidence in the manufacturing sector

In February, the balance figure measuring confidence in the manufacturing sector was -11. Confidence increased by one point from the revised level of the previous month. The confidence indicator is still well below the long-term average of +1.

Production is expected to continue to increase slightly in the coming months. In February, order books remained thin. Finished goods inventories grew compared to the previous month and are now slightly above the normal level. Capacity utilization is at full capacity for 55% of companies, which is slightly higher than last month.

In Finland, business confidence in the manufacturing sector was the second weakest among EU countries in January.

Decline in confidence in the construction sector

In February, the balance figure representing confidence in the construction sector decreased to -42. The balance figure was two points lower than the revised figure for January. The long-term average is -7.

Order backlog improved slightly from the previous month but is still well below the level considered normal. Expectations regarding the number of personnel in the construction industry deteriorated significantly.

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

Drop in confidence in services

Confidence in services weakened in February. The balance figure measuring confidence was -4, which is five points lower than in January. The long-term average for the services indicator is +11.

The economic situation has remained difficult in recent months. Sales have decreased slightly compared to the previous month. Sales expectations are still positive, but have dampened since the previous month.

In Finland, confidence in services was significantly below the EU average in January.

Decline in confidence in retail trade

In February, confidence in retail trade decreased to -12, which is five points lower than in January. The long-term average is -1.

Sales in retail trade have further declined compared to previous months. Sales expectations for the coming months remain weak. Inventories increased compared to the previous month.

Confidence in retail trade in Finland was weaker than the EU average in January.