March 2025 Business Confidence in Finland: Sectoral Insights – Manufacturing Improves, Construction Declines, Services and Retail Show Modest Gains

Business confidence was on the rise in March. Only the construction sector was in decline.

Confidence in manufacturing continued to strengthen slightly

In manufacturing, the indicator reading measuring confidence rose to -5 in March. A month earlier, the CCI was at -6 points. Confidence is still slightly below the long-term average (0 points).

Production is expected to grow moderately in the coming months. The order backlog has improved, but still below the usual level. Inventories of finished goods increased slightly, and their level is average. There is still quite a lot of capacity available, as 62 per cent of the respondents are fully utilised.

In February, industrial confidence in Finland was close to the average level of the EU countries.

Confidence in construction weakened in March

Confidence in construction weakened in March. The confidence fell to -35, while in February its balance figure was -30. Confidence is well below the long-term average, which is -8.

The construction order backlog is still very low, and the number of workforce is expected to continue to decline in the coming months.

According to the comparison figures measured in February, confidence in construction in Finland was the second weakest in the EU countries.

Confidence indicator for services showed a modest rise in March

Confidence in the service sector saw a slight increase in March. The confidence indicator strengthened slightly, with the latest balance figure at +4, compared to +3 in the previous month. The long-term average of the service sector indicator is +11.

The general economic trend was described as still quite modest. Sales growth has been slow, but somewhat better growth figures are forecast for the coming months.

In Finland, service sector confidence was weaker in February than the EU average.

Confidence in retail trade improved in March

Confidence in the retail trade improved slightly in March. The CCI rose to -2 points from -4 points in February. The indicator is currently at the long-term average level.

The volume of retail sales continued to decline in March, but sales expectations strengthened. Sales are expected to grow somewhat. Inventories remained slightly higher than average.

In February, confidence in the Finnish retail trade was weaker than the average in the EU countries.

Source: Confederation of Finnish Industries (EK)
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