Business confidence on rise but still below average: EK

All main industries saw growth in December after more than two years, according to the Business Confidence Indicators of December published by the Confederation of Finnish Industries (EK) on Wednesday.

The last time such growth happened in October 2021.

In manufacturing, the balance reading measuring confidence was minus 20 in December.

Confidence rose by one point from the previous month’s level. Confidence is still clearly below its long-term average, which is +1.

Production is feared to decrease in the coming months and order backlogs have become even thinner. Inventories of finished products decreased slightly from the previous month, but are still clearly above the normal level.

Only 46% of companies are fully utilised at capacity, a lower share than last month.

In November, industrial confidence in Finland was still the second weakest among EU countries.

In December, the balance figure describing confidence in construction rose to minus 36. The balance figure was seven points more than in November. The long-term average is minus 7.

The order backlog remained close to the previous month’s level and is still clearly below the level considered normal.

Expectations regarding the number of employees in the construction sector are still weak, but less pessimistic than in November.

Among EU countries, confidence in construction was weakest in Finland in November.

Confidence in services increased in December. The balance figure measuring confidence was minus 2, which is three points more than the revised reading in November. The long-term average for the service sector indicator is +12.

The economic outlook has still been difficult in recent months, but the trend is more positive than in November.

However, sales have still grown very moderately compared to previous months. Sales expectations are also still cautiously positive.

In Finland, confidence in services was clearly below the EU average in November.

In retail trade, confidence rose to minus 15 in December, which is one point higher than in November. The long-term average is minus 1.

In retail trade, sales have decreased compared to previous months. Sales expectations for the coming months are also weak. Inventories remained at the previous month’s level.

Retail trade confidence was weaker in November than the EU average.