Invest in Finland

Finland shows signs of increasing consumer and business confidence

29/09/2009

Finnish consumers' confidence in the economy gained strength in September, according to data based on Statistics Finland’s latest Consumer Survey. Consumer confidence in September was only slightly weaker than the long-term average and the consumer confidence indicator stood at 11.7 compared to 8.2 in August and 8.1 one year ago. The Consumer Survey is based on interviews with 1,535 people resident in Finland between 1 and 18 September.

Consumer expectations concerning Finland's economy improved distinctly in September, and views on the country’s economic development were actually the brightest since 1997. Consumers regarded their saving possibilities as good and felt some optimism about their own economic situation. In contrast, their assessments about unemployment were still gloomy. In September, consumers regarded the time favourable for purchasing durable goods and also for raising a loan.

Manufacturing confidence recovering

Finnish manufacturing confidence also recovered somewhat in September, according to newly published information from the confidence indicator of the Confederation of Finnish Industry (EK). The confidence indicator scored -17 in September, slightly up from the revised figure of -25 in August. The long-term average is +2.

The recovery is mainly due to a decline in stocks of final goods. Nevertheless, order books are still clearly below average and production volumes are expected to decrease slightly during the next few months.

The construction confidence indicator gained a few points in September, reaching -45 points compared to -54 in August. The long-term average is -5. Order books turned slightly up but are still well below their normal level. Further personnel cuts are expected in the near future.

Business confidence in the service sector strengthened slightly. However, the overall business situation is still weak. The services confidence indicator scored -22 points in September, compared to -27 in August. The long-term average of the series is +16. The sales volume is expected to decline further.

The retail trade confidence stayed at a low level. The confidence indicator scored -14 in August, just one point up from the previous month. The volume of sales is still in a decline and stocks are slightly above normal.