Business confidence weakened slightly

As a whole, business confidence weakened slightly in December. Large dispersion between industries.

Manufacturing confidence weakened slightly

In manufacturing, the confidence indicator fell to -9 points in December. In the previous month, confidence was -7 in the balance figure. Confidence is below the long-term average, which is 0.

Production is expected to increase only slightly in the coming months. The order backlog is still below the normal level. Finished product inventories remained close to average. Capacity is fully utilised by 58% of respondents.

In Finland, industrial confidence had risen in November to fairly close to the EU average.

Confidence in construction weakened in December

Confidence in construction turned weaker again in December. The balance figure measured in December was -35 points, while the previous month’s revised figure was -25. The long-term average for the CCI is -8.

The order backlog for construction is considerably below the level considered normal, and personnel are expected to decline in the coming months.

According to comparison figures measured in November, confidence in construction in Finland was the third weakest among EU countries.

Confidence in services remained fairly stable

Confidence in services remained fairly stable. However, the CCI fell by two points to the balance figure +2. The long-term average for the service sector indicator is +11.

General cyclical developments are described as still being rather modest. However, the slight growth in sales has continued, and somewhat stronger growth is forecast for the coming months.

In Finland, confidence in services was weaker in November than in EU countries on average.

Retail trade confidence strengthened in December

Confidence in retail trade strengthened in December and the CCI rose slightly to a positive level. Its latest balance figure is +1, while the previous month the indicator was at -7 points. The long-term average is -2.

In retail, sales continued to decline, but sales expectations for the coming months have improved. Inventories contracted to an average level.

In November, confidence in Finland’s retail trade was weaker than the EU average.