Outlook of industrial sector strongest in years

Exports expected to strengthen towards end of year

Leif Fagernäs

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According to the Business Tendency Survey published by the Confederation of Finnish Industry and Employers (TT), both industrial exports and output should grow towards the end of the year.
      Despite the accelerating growth in exports and output, Finnish industrial corporations believe that their personnel numbers will continue to fall somewhat during the coming months.
      According to department head Pekka Tsupari from TT, positive developments in international economic indicators have improved the sector's confidence in Finland. "The recovery of the global economy will accelerate export demand during the last part of the year", Tsupari commented.
     
Industrial output and exports already grew during the second quarter of the year, and the value of new orders exceeded expectations slightly. However, the industry sees the current cyclical phase as weaker than normal.
      The construction, chemicals, and paper industries are enjoying the strongest situation at present. In the chemicals industry, the business outlook is already better than average. The order books of the paper industry continued to improve, and there was less excess capacity than before.
      Tsupari observed that global competition is putting pressure on industrial prices, which have fallen almost continually for the past three years. The Business Tendency Survey now revealed that the industry expects the falling trend in prices to end during the third quarter.
     
TT Director General Leif Fagernäs remarked that the industrial outlook is now better than for several years. The falling prices of key export products in the electronics and paper industries must not be forgotten, however.
      Fagernäs believes that in order for Finland to succeed in the future, deeper internationalisation and networking will be required.


Links:
  TT Business Tendency Survey

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