Confidence indicators rose except for the manufacturing

The combined business confidence strengthened slightly in November. However, the variation between sectors was significant.

Manufacturing confidence indicator fell by a couple of points

The manufacturing confidence indicator declined slightly in November, but it remained within its longer-term upward trend. The latest balance figure is –6, compared with –4 in the October survey. Confidence stands slightly below its long-term average level (0 points).

Production expectations are moderately positive, and output is expected to grow in the coming months. However, order backlogs remain lower than average. Finished goods inventories increased to slightly above the average level. Capacity utilisation did not improve much: in November, 62% of respondents reported operating at full capacity (60% in October).

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

Confidence in construction remained almost unchanged at a low level

Construction confidence remained nearly unchanged in November, and its level was low. The November reading of the confidence indicator is –23, compared with –24 in October. Confidence is weaker than the long-term average (–9 points).

According to construction companies, order backlogs are still low, but staff numbers are no longer expected to shrink significantly in the coming months.

In Finland, construction sector confidence in October was the weakest among EU countries.

Services confidence strengthened

Confidence in the private service sectors turned upward in November. The latest balance figure for the confidence indicator is +6, compared with +2 in the previous month. The long-term average of the time series is +11.

General business conditions are assessed to have improved slightly over the past few months. Sales have increased slowly, and growth is expected to accelerate somewhat in the coming months.

In Finland, services confidence in October was somewhat lower than the EU average.

Retail trade confidence improved slightly

Retail trade confidence improved slightly in November. The confidence indicator strengthened to +4, up from 0 in October. The long-term average of the indicator is –2.

Retail sales grew only marginally in November, but there are slightly stronger expectations for growth in the coming months. Inventories decreased, though their level remains slightly above average.

Finland’s retail trade confidence indicator in October was close to the EU average.

Data