Confidence in the Finnish economy collapsed in September, according to a survey by the lobby group Confederation of Finnish Industries (EK).
The Confederation reported that the manufacturing confidence indicator was -20 in September, the same level as in August. The long-term average is +1 according to EK.
At the same time, the federation said production expectations are pessimistic in the coming months, explaining that orders continued to fall and that production of finished products also declined compared to August, which was slightly above the long-term average.
Retail confidence also fell by seven points in September from the previous month. Confidence in retail was -5, slightly below the long-term average of -1.
According to the business survey, sales developed positively in September, but views on future sales were very weak.
"It is worrying that confidence in services has lagged behind, while low pressure has continued in the industrial and construction sectors," said EK’s chief economist Sami Pakarinen. He added that the near future was worrying as it seems that the country’s economic problems are likely to worsen as the coronavirus crisis gains momentum.
Confidence in the service sector also declined slightly in September, gaining -11 points, one point less than the revised figure for August. The Confederation noted that the September confidence level was far from the long-term average of +12.
EK’s business surveys are co-financed by the EU and, according to the Confederation, have been conducted since 1966.