Confidence indicators rising in August

Business confidence was rising in August. Only the retail sector declined slightly.

Confidence in manufacturing strengthened in August

The confidence indicator in manufacturing strengthened to the balance figure -1 in August, while the revised balance figure of the previous month’s inquiry was -5. Confidence improved close to the long-term average level (0 points).

Output expectations have become clearer, and output growth is expected to accelerate in the coming months. The order backlog increased slightly, but it was still described as quite meager. Inventories of finished goods remained at the normal level. Production capacity was slightly better utilised than before – in August, 63 per cent of the respondents had their capacity fully utilised (55 per cent in July).

In July, industrial confidence in Finland was at the average level of the EU countries.

A turn for the better in confidence in construction

Confidence in construction was still weak in August, but the confidence indicator improved from the previous month. The balance figure for August is -27, while the figure for July was -37. Despite the increase, confidence is well below the long-term average (-9 points).

The order backlog of construction companies improved slightly, but it is clearly lower than normal. The number of employees is expected to decrease slightly further in the coming months.

In July, the confidence of Finnish construction companies was the weakest among the EU countries.

Confidence in services is on a slight rise

Confidence in the private service sector strengthened somewhat in August. The latest balance figure of the indicator is +6, while the revised reading for the previous month was +2. The long-term average of the confidence indicator is +11.

The general economic trend is estimated to have taken a slight turn for the better during the summer. Sales have been on the rise, and sales volumes are expected to continue to rise slightly in the coming months.

In July, trust in services in Finland was fairly close to the average level of the EU countries.

Confidence in the retail trade remained almost unchanged

In August, confidence in the retail trade remained almost at the same level as in the previous month. The latest balance figure for the CCI was +2, while the revised result for July was +3. The long-term average for the CCI is -2.

Retail sales remained stable in August. In the coming months, there are expectations of slow growth in sales volumes. Inventories rose slightly above the average level.

In July, Finland’s confidence indicator for retail trade was slightly higher than the EU average.