Finland's combined economic confidence indicators recorded modest gains this quarter as business and consumer outlooks showed tentative improvement. The Confederation of Finnish Industries reports measured optimism across most sectors despite persistent challenges in industrial production and construction. Service sector confidence strengthened by four points while retail trade expectations also improved significantly during the latest reporting period.
Industrial confidence dipped slightly but maintained its longer-term upward trajectory according to official data. Production expectations remain moderately positive with forecasts predicting growth in coming months despite below-average order books. Construction sector confidence remains at low levels though companies anticipate minimal workforce reductions in the immediate future.
Chief economist Penna Urrila described the economic picture as cautiously positive despite industrial sector fluctuations. The gradual recovery pattern shows Finnish companies slowly regaining confidence across most industries though overall economic activity remains below historical averages. Service sector sales continue slow growth with expectations for accelerated expansion in upcoming quarters.
Consumer confidence strengthened marginally compared to both last month and the same period last year according to Danske Bank private sector economist Kaisa Kivipelto. Statistics Finland data shows the consumer confidence indicator at -6.5 this month compared to -7.6 last month and -7.4 during the same period last year. The gender confidence gap remains substantial with women's economic confidence at -10 compared to men's -3.1.
Recent unemployment figures provide partial explanation for this disparity as women's unemployment rate increased 2.3 percentage points compared to last year while men's unemployment rose only 0.7 percentage points. Retail sector weakness and public sector spending reductions particularly affect female-dominated employment sectors. Assessments of current personal finances remain weak while expectations for Finland's general economic situation continue subdued.
Unemployment expectations remain pessimistic with only 16 percent of consumers anticipating improvement within the next year. Over half predict increasing unemployment while personal unemployment risk perceptions remain elevated. In contrast, expectations for personal financial situations one year from now improved compared to both last month and the same period last year.
Nearly one-third of consumers expect their household finances to improve while 16 percent anticipate deterioration. Current timing remains unfavorable for major purchases and borrowing according to most respondents though nearly one-third consider borrowing conditions favorable. Slightly less than half view saving as worthwhile while spending intentions remain limited across most categories.
Only 17 percent of consumers consider the present moment opportune for expensive purchases according to the latest survey data. Intentions to spend on durable goods within the next year remain quite limited with 12 percent planning increased spending and 39 percent anticipating reduced expenditure. Kivipelto notes the improved consumer expectations about personal financial development represent positive news despite labor market pressures.
Household purchasing power continues strengthening as wage growth outpaces moderate inflation though significant consumer spending recovery requires clearer labor market improvement. The Finnish economy demonstrates resilience through gradual confidence rebuilding but faces structural challenges in employment distribution and sectoral balance. This cautious optimism reflects broader Nordic economic patterns where steady recovery follows measured policy responses to global economic pressures.