Business confidence unchanged


Among the main industries, confidence in struggling construction rose clearly, while services saw a decline.

Confidence Indicators May 2023

Last updated

Source: EK (Macrobond)

Industrial confidence rose slightly

In manufacturing confidence rose by one point in May. The latest balance reading was -12, compared to -13 in the previous month. The CCI is below the long-term average, which is +1.

Production is expected to decrease in the coming months and order backlogs have continued to thin. Inventories of finished products are clearly higher than normal, but slightly lower than in the previous month. At the same time, capacity was only 62% in full use, which is one percentage point lower than last month.

In Finland industrial confidence was still the second weakest among EU countries in April.

Confidence in construction rose clearly

In May, confidence in construction rose +19 points from the previous month. The balance figure was -9, while in April the balance figure was -28. The long-term average is -7.

The order backlog increased from the previous month, but is still clearly below the level considered normal. Expectations for the number of employees in the construction sector are still weak, but no longer as much as in the previous month.

Among EU countries confidence in construction was weakest in Finland in April.

Confidence in services fell

Confidence in services fell to the balance figure 0 in May. This was four points less than in April. The long-term average for the service sector indicator is +12.

The economic outlook has remained negative in recent months. Despite the economic picture, sales have increased compared to previous months and sales expectations are still positive.

In Finland confidence in services was clearly below the EU average in April.

Retail trade confidence in slight decline

In retail trade confidence fell to -7 in May. The balance figure was one point less than in the previous month. The long-term average is -1.

In retail trade sales have increased compared to previous months. Sales expectations for the next few months, on the other hand, have started to decline slightly. Inventories have increased from the previous month’s level.

Retail trade confidence was weaker than the EU average in April.