Prospects for Finnish economy better than European average

The latest confidence indicators from the Confederation of Finnish Industries EK suggest that the prospects for the Finnish economy are better than the average for the EU countries.

Growing order books in the manufacturing sector are fuelling the growth of the Finnish economy, according to the confidence indicators published by the Confederation of Finnish Industries EK for July 2010. The latest indicators show encouraging prospects for the Finnish economy compared to the European average.

In manufacturing the confidence indicator was stable in July but production is growing steadily and the growth is expected to continue. Order books have grown substantially and stocks of final goods have also increased somewhat. Two major companies, Rautaruukki, which supplies metal-based components, systems and integrated systems to the construction and engineering industries, and Stora Enso, a paper, packaging and wood products company, have both published positive interim reports for 2010.

The confidence indicator in the construction sector gained a few points in July but is still weaker than the long-term average, despite a slight improvement in order books. In the services sector the companies’ confidence indicator declined slightly in July, but is still in line with the long-term average. Steady sales growth is expected during the next few months and the overall business situation is portrayed as fairly positive.

Finnish retail trade companies’ confidence was well above average in July. Sales volumes have increased and expectations for the coming months are fairly positive. Stocks remained close to normal in July.

Sources: Confederation of Finnish Industries EK, YLE