The level of business confidence in Finland continued to rise in November, according to the Confederation of Finnish Industries EK. Employer lobbies found that confidence grew in industry, construction, retail and trade.
However, the confidence indicator for service companies weakened slightly compared to October, but remained above the long-term average, according to the Confederation.
"Yes, confidence in Finnish business is exceptionally high. Overall, it was last at a higher level in April 2007, the Director of EK, Sami Pakarinen, told the news agency STT.
However, responses to EK’s confidence survey were collected before recent news of the emergence of a new variant of the coronavirus, Omicron, provided an opportunity to undermine financial confidence.
Pakarinen said that the impact of the new variant on confidence levels will become clear after the release of the results of the next confidence indicator after the Christmas holidays and added that not much is known about Omicron at this stage.
The global recovery from the coronavirus has already begun to slow down in some parts of the world, Pakarinen said, adding that such a development has started in Central Europe, but it has not reached Finland.
"Consumer confidence has fallen slightly, while in the US confidence has been declining for some time. The business cycle matures at some point – it cannot accelerate continuously," he said.
Consumer inflation is a concern
According to Statistics Finland’s consumer confidence indicator, confidence levels in the country decreased in November compared with the previous month. As consumers’ perceptions of their current economy were positive, their expectations of the future, and especially of Finland, weakened.
Inflation is already being felt by consumers according to the number crusher. In November, consumers’ assessments and expectations of their economy were well above long-term averages.
Chief Economist of Danske Bank, Pasi Kuoppamรคki, said in a statement that consumers and businesses had expected economic growth to continue in the fourth quarter.
"However, the new Covid variant and the increase in coronavirus restrictions are a cause for concern, which is likely to be reflected in a slowdown in economic growth compared to previous expectations this winter," Kuoppamรคki stated.
Statistics Finland’s consumer confidence indicator was 1.2 in November, down from 2.7 in October and 6.0 in September. In November 2020, the indicator was -4.8 and the long-term average is -1.7, so consumer confidence is currently more positive than usual.
The results of the Agency’s indicator were also measured before the news of the new Covid variant, as Statistics Finland collected data from 1 to 18 November.
Source: The Nordic Page