Slight decline in confidence indicators following a period of growth

Business confidence in Finland weakened slightly in October, although confidence indicators across sectors remained on an upward trend.

Upward trend in manufacturing confidence stalls in October

The manufacturing confidence indicator declined in October, even though the overall trend in the time series remains upward. The latest balance figure is -4, compared to a revised +2 in the September survey. Confidence thus fell slightly below the long-term average level (0 points).

Production expectations have become more cautious, although output is still expected to increase in the coming months. The order backlog remained unchanged from the previous month and continues to be below normal. Stocks of finished goods grew slightly but remain close to their typical level. Capacity utilization weakened again — in October, 60% of respondents reported full capacity utilization (compared to 68% in September).

In Finland, manufacturing confidence was already clearly above the EU average in September.

Construction confidence weakened slightly

Construction confidence declined somewhat in October. The latest balance figure for the confidence indicator is -24, compared to -21 in September. Confidence remains weaker than the long-term average level (-9 points).

Assessments of the order backlog among construction companies are weak, and the backlog is still described as clearly below normal. Employment expectations for the coming months also remain slightly negative.

In September, confidence in Finland’s construction sector was the second weakest among EU countries.

Service sector confidence remained stable in October

Confidence in private service industries showed little change in October. The latest balance figure for the confidence indicator is +2, compared to +3 in the previous month. The long-term average for the time series is +11.

Overall business conditions during the summer and early autumn were assessed as rather subdued. Sales have remained nearly unchanged, but they are expected to grow slightly in the coming months.

In September, service sector confidence in Finland was slightly below the EU average.

Retail trade confidence declined in October

Retail trade confidence weakened in October. The latest balance figure for the confidence indicator is 0, down from +7 in September. The long-term average for the indicator is -2.

Retail sales did not continue the growth seen in previous months. However, moderate sales growth is still expected in the coming months. Stocks increased slightly and are now somewhat above the average level.

In September, Finland’s retail trade confidence indicator was above the EU average.