Only minor changes in business confidence indicators

Business confidence overall in May remained at the same level as in April.

Confidence in manufacturing fell slightly

In manufacturing, the Business Confidence Indicator fell to -11 in the May survey. In the April survey, the indicator was at -10 points. Confidence is weaker than the long-term average (0 points).

Production expectations are rather cautious, and production volumes are expected to remain unchanged in the coming months. The order backlog has strengthened slightly, but still below the usual level. Inventories of finished goods grew slightly higher than normal. There is quite a lot of available capacity, as only 57 per cent of the respondents have fully utilised the capacity.

In Finland, the confidence indicator in manufacturing was somewhat lower than the EU average in April.

Confidence in construction increased slightly

The confidence indicator for construction improved slightly, but it is still at a low level. The indicator reading for May is -30, while the balance figure for April was -31 points. Confidence is still well below the long-term average of -8.

The order backlog for construction remains at a modest level. Expectations for the development of the labour force are still cautious, and the number of employees is forecast to decline further in the coming months.

According to the comparison figures measured in April, confidence in construction in Finland had remained the weakest among the EU countries.

Confidence indicator for services strengthened little in May

Confidence in services strengthened slightly in May. The indicator rose to +3 from the revised reading of +2 in the previous month. The long-term average for the service sector indicator is +11, so confidence has remained lower than average.

The general economic development is described as still modest. However, sales have remained at a cautious growth, and steady growth figures are expected in the coming months as well.

In April, confidence in services in Finland was somewhat weaker than the average in the EU countries.

Confidence in retail trade unchanged in May

Confidence in the retail trade remained unchanged in May. The indicator was at +8, which is the same as in the previous month. The indicator is somewhat stronger than average.

The volume of retail trade sales grew faster in May than before. Growth is forecast to remain moderate in the coming months. Inventories grew somewhat above average.

In April, Finland’s confidence indicator for retail trade was stronger than the EU average.