Newsletter 11/2009
Stability within sight
According to the business trend survey published by the Confederation of Finnish Industries (EK) at the beginning of November, the drop in the business trend will continue in spite of small glimpses of light at the end of this year and the beginning of the next. Prospects for the next few months are described as mainly cautious. There is little variation to be found among the various sectors.
Industrial companies are not expecting any significant recovery during the winter and spring. The contraction in output is not forecast to continue, but new orders are few in number. A gradual improvement in the market situation of the forest and chemical industries is predicted, while the technology industry believes the coming months will be poor. The balance figure that measures business trend prospects for industrial companies was -6 in October (-8 in July).
In construction the general business trend picture has brightened slightly, the weakest stage having been left behind. However, because of seasonal factors the next few months are still described as gloomy. The balance figure for business trend prospects in October was -32 (-35 in July). In the service sectors expectations have also shown some improvement: business trend prospects were -5 in October (-32 in July).
Indicators predicting the development of the global economy have generally continued to grow stronger. The confidence of companies and consumers has strengthened on many markets and the situation on the financial markets has stabilised.
Recovery measures set the USA economy on a path of strong growth at the beginning of the autumn. At the same time the pace of growth has accelerated in China. In EU countries, however, the present year has been unprecedentedly weak and next year is expected to be relatively weak as well.
The business trend survey of the Confederation of Finnish Industries (EK) is published four times a year. It has been carried out regularly since 1966.
The survey in October was answered by 1,095 companies employing about 290,000 people in Finland.
