Confidence indicators mostly on the rise in January

Overall business confidence in the Finnish economy strengthened in January. Confidence in manufacturing remained broadly unchanged, while indicators improved in other sectors.

Manufacturing confidence indicator broadly unchanged

The manufacturing confidence indicator remained largely stable in January. The latest balance figure stands at -1, compared with 0 in the previous month. Confidence is close to its long-term average (0).

Production expectations are positive, with output growth forecast for the coming months. However, order books remain somewhat below average. Stocks of finished goods declined to an average level. Capacity utilisation improved slightly: in January, 67% of respondents reported operating at full capacity (revised figure for December: 64%).

In Finland, manufacturing confidence in December was slightly below the EU average.

Construction confidence weak, but indicator edged up

Confidence in construction remained weak in January, although the confidence indicator improved. The latest reading is -22, up from -28 in December. Confidence remains clearly below its long-term average (-9).

According to construction companies, order books are still very thin. Employment expectations for the coming months remain cautious, and no increase in employment is yet anticipated.

In December, confidence among Finnish construction companies was the lowest in the EU.

Services confidence strengthened in January

Confidence in the private services sector strengthened in January. The confidence indicator improved to +8, from a revised +1 in December. The long-term average of the series is +11.

Overall economic conditions are still assessed as rather subdued in recent months. However, sales have continued to grow, and growth is expected to accelerate in the coming months.

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

Retail trade confidence indicator on the rise in January

Confidence in retail trade improved in January. The confidence indicator rose to +6, from a revised +1 in December. The long-term average of the indicator is -2.

Retail sales grew slowly in December, but growth is expected to accelerate in the coming months. Inventories remained broadly unchanged and stood slightly above average.

In December, Finland’s retail trade confidence indicator was slightly above the EU average.