Confidence strengthened slightly in April

Business confidence in Finland strengthened slightly in April. Construction confidence declined, while indicators in other sectors edged up.

Manufacturing Confidence Indicator Strengthened Slightly

The manufacturing confidence indicator strengthened slightly in April. Its latest balance figure is +1, compared with –1 in the previous month. Confidence is close to its long-term average level (0 points).

Production expectations have remained fairly positive. Order books have strengthened but are still below average. Stocks of finished products increased marginally. Capacity utilisation improved slightly: in April, 64% of respondents reported operating at full capacity (the revised figure for March was 62%).

In Finland, manufacturing confidence in March was stronger than the EU average.

Construction Confidence Weakened

Construction confidence weakened somewhat in April. The confidence indicator fell to –19, compared with –15 in March. Confidence remains weaker than its long-term average (–9).

According to construction companies, order books are still clearly below normal levels. Employment expectations for the coming months remain subdued, and employment is not expected to increase.

In March, confidence among Finnish construction companies was below the EU average.

Services Confidence Indicator Largely Unchanged

Confidence in private service industries changed little in April. The latest reading of the confidence indicator is 0, compared with a revised figure of –1 in March. The long-term average of the series is +11, indicating that confidence remains below average.

The business climate is assessed to have been weak in recent months. Sales have increased only marginally, but somewhat stronger growth is expected in the coming months.

In March, services confidence in Finland was the third weakest among EU countries.

Retail Trade Confidence Recovered from the Previous Month’s Decline

The retail trade confidence indicator recovered from its decline in the previous month in April. It rose to +9, after standing at –1 in March. The long-term average of the indicator is –2.

Growth in retail sales accelerated in April, and moderate growth is also expected in the coming months. Inventories declined, but their level remains above average.

In March, Finland’s retail trade confidence indicator had fallen below the EU average.