Service sector expects growth this year despite flagging optimism by small companies
Sector expects to create 5,000 more jobs by end of year
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Sales prospects for small and medium-sized service companies for the rest of the year have significantly declined. On the average, companies in the service sector expect three percent growth this year, but the estimate for companies of less than ten people is just one percent. In medium-sized companies growth expectations are two percent.
Earlier in the year, small companies predicted growth of more than three percent. Medium-sized companies employing from 10 to 250 people have also downgraded their expectations from last winter. However, large service companies expect 3.5% growth in sales.
The data is part of what will be the last business cycle survey of the Employers’ Confederation of Service Industries (PT). Next year PT will merge with the Confederation of Finnish Industry and Employers (TT) to form a new organisation, Finnish Industry (EK).
Most service sector companies expect business to remain largely unchanged the rest of the year.
There are great differences in estimates of growth in sales. Growth of more than seven percent is expected in companies involved in property and personnel services, but the hotel and restaurant business, as well as road transport expect just one percent growth.
The service sector expects to employ 5,000 more people at the end of the year, 3,500 of whom will be in the Uusimaa area in Southern Finland. Half of the new jobs are expected to be part-time.
As a whole, things look fairly positive for the Finnish service sector. If 100 points is set as the figure depicting the long-term average for expectations for the immediate future, the sector now stands at 127 points. In August last year, in the wake of the Iraq war and the SARS epidemic, the figure was just 67 points.
Helsingin Sanomat
