Business confidence weakened in April

Economic confidence among businesses weakened overall in April. Industry and services are downbeat, while construction and retail show an upward trend.

Confidence in manufacturing weakened in April

The indicator measuring confidence in manufacturing weakened in April to a balance figure of -10. In the corresponding survey in March, the indicator was at -5. Confidence is weaker than the long-term average (0 points).

Production expectations are more cautious, and production volumes are expected to remain unchanged in the coming months. The order backlog is clearly below the normal level. Finished goods inventories remained stable, close to the normal level. There is still quite a lot of capacity available, as only 58% of the respondents reported full capacity utilization.

In March, manufacturing confidence in Finland was at the average level of EU countries.

Confidence in construction improved slightly from a low starting point

The confidence indicator for construction improved slightly, but its level remains very low. The latest indicator reading is -31 points, compared to -35 in March. Confidence is still significantly below the long-term average, which is -8.

The order backlog in construction remains very scarce, and the number of workers is expected to continue to decline in the coming months.

The confidence in Finnish construction was the weakest among EU countries according to the comparative figures measured in March.

Service confidence indicator fell slightly in April

Service confidence weakened slightly in April. The latest balance figure of the confidence indicator was +1, compared to +4 the previous month. The long-term average of the services sector indicator is +11, so confidence is currently weaker than average.

The general economic trend is still described as languid. However, sales have remained in slow growth, and moderate growth figures are also forecast for the coming months.

In Finland, service confidence was somewhat weaker in March than in the EU countries on average.

Retail confidence improved in April

Retail confidence strengthened in April. The confidence indicator rose to +8 from -2 in the previous month. The indicator also exceeded the long-term average.

The volume of retail sales turned into a small increase in April. There are also growth expectations for the coming months. Inventories fell close to the average level.

In March, Finland’s retail confidence indicator was somewhat lower than the EU average.