Confidence indicators declined somewhat – level remains moderately good

Business confidence in Finland weakened slightly in October. Confidence in manufacturing and construction saw only minor changes, while the confidence indicators for services and retail trade declined somewhat.

Manufacturing confidence remained broadly unchanged

Manufacturing confidence remained broadly unchanged in October. The confidence indicator now stands at +2, compared with +3 in the previous month. Confidence remains slightly above its long-term average of 0.

Production expectations for the coming months have remained fairly positive, and output growth is expected to continue. Order books are reported to be slightly below normal, while stocks of finished goods decreased somewhat. In the latest survey, 67% of respondents reported operating at full capacity.

According to comparative data collected in September, confidence among Finnish manufacturing companies was clearly stronger than the EU average.

Construction confidence declined slightly

Construction confidence declined slightly in October. The latest confidence indicator reading stands at -5, compared with -2 in the previous month. Confidence nevertheless remains slightly above its long-term average.

Construction companies’ assessments of their order books have remained broadly unchanged. Employment expectations are slightly more cautious than before, but remain mildly positive.

According to comparable data collected in September, Finland’s construction confidence indicator was close to the EU average.

Services confidence indicator declined moderately

The services confidence indicator was slightly lower in October than in September. The latest balance figure stands at +9, compared with +13 in the previous month. Confidence is close to its long-term average of +11.

According to service companies, the overall business situation has remained unchanged in recent months. Sales growth has been somewhat slower than in late summer, but moderate growth is expected to continue.

According to comparative data collected in September, confidence among Finnish service companies was higher than the EU average.

Retail trade confidence weakened in October

Retail trade confidence declined in October. The latest balance figure stands at +2, compared with a revised reading of +9 in the previous month. The confidence indicator nevertheless remains above its long-term average of -2.

Retail sales continued to grow, although the pace slowed. Slow sales growth is expected in the coming months. Inventories remained broadly unchanged.

According to comparative data collected in September, confidence in Finland’s retail trade sector was significantly higher than the EU average.