EK Business tendency surveys

May 9th 2012

Outlook for the economy remains fairly subdued
Output will scarcely grow at all, and employment expectations are cautious

According to the Business Tendency Survey conducted by EK in April, Finnish business growth stabilised in the early part of the year following the increase in uncertainty last autumn. The current business situation is described as somewhat weaker than average in all the main sectors.

The business outlook for the coming months is cautious in all the main sectors but has improved from the January level. No substantial changes in the general economic conditions are expected in the next six months.

Output and sales projections for the coming months predict very slow growth at best. Gradual acceleration of growth is expected to take place in late summer and autumn in manufacturing and services. However, employment expectations are very low, and the labour force is expected to decline in all but the service sectors.

In April, the business outlook balance indicator for manufacturing was +9, up from -6 in January. In all, 18% of respondents expected an upturn during the summer and early autumn, while 9% felt that the economy would deteriorate during this period.

The business outlook for construction improved to -5 in April from -32 in January. A total of 11% of companies anticipated an upturn, while 16% believed that the situation would deteriorate.

The business outlook for services improved to +2 in April from -8 in January. An upturn was forecast by 11% of respondents, while a decline was expected by just 9%.

• Latest business tendency survey (may  9th)

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Confidence Indicators
Manufacturing Confidence Improved in April
Manufacturing confidence improved in April. Order books have grown slightly and some production growthis expected for the coming months.

The manufacturing confidence indicator scored -2 points (revised fi gure -5 points in March). The longterm average is +3 points.

• Confidence Indicators, April 2012 (pdf)