Manufacturing confidence rose – other main sectors remain weaker

Among the main sectors, manufacturing confidence is trending upwards, while retail confidence is in clear decline.

Manufacturing confidence continued to improve

In August, the indicator measuring confidence in the manufacturing sector was -8. Confidence rose by three points from the revised figure in July. However, the indicator is still clearly below the long-term average, which is +1.

Production is expected to increase slowly in the coming months. The order backlog improved slightly in August but is still below the level considered normal. Finished goods inventories decreased but are slightly larger than normal. Capacity is fully utilized by 59% of companies, which is the same as the previous month.

In Finland, manufacturing confidence in July was below the average level of EU countries.

Construction confidence remains weak

In August, the balance figure describing construction confidence fell to -37, which is three points lower than the previous month. The long-term average is -8.

There was no change in the order backlog from the previous month. The order backlog is described as significantly weak. Expectations for employment development in the construction sector are also poor.

In Finland, construction confidence in July was the second weakest among EU countries.

Service sector confidence remains almost unchanged

Service sector confidence remained nearly unchanged in August. The balance figure measuring confidence was 0, compared to +1 in the previous month. The long-term average for the service sector indicator is +11.

The economic trend has been slightly downward in recent months. However, sales increased slightly compared to the previous month. Sales expectations are cautiously positive, with modest growth expected in the coming months.

In Finland, service sector confidence in July was the fourth weakest among all EU countries.

Retail confidence in clear decline

In August, retail confidence fell significantly. The confidence indicator dropped to -18 points, compared to the revised figure of -11 in the previous month. The long-term average is -2.

Retail sales have decreased significantly compared to previous months, and sales expectations for the coming months are modest. Inventories grew from the previous month, and the situation is described as weaker than average.

In Finland, retail confidence in July was the second weakest among EU countries.