Economic Tendency Survey August 2018

The Economic Tendency Indicator up for the third consecutive month

The Economic Tendency Indicator continued to rise in August, from 109.7 in July to 111.5. This level indicates a considerably stronger mood than normal in the economy. This is the third month in a row that the indicator has risen.

The strong situation within the manufacturing sector is showing no signs of abating. On the contrary, the confidence indicator for the sector rose further in August. Strongest of all are the signals from companies in the pulp and paper industry, as well as from the transport sector.

The confidence indicator for construction and civil engineering operations also rose in August. This upturn can be explained by substantial upward revisions as regards employment plans among companies within civil engineering.

Optimism in the retail sector recovered to some extent in August, following a significant decline the previous month. The confidence indicator rose 5.2 points and is once again highlighting a stronger situation than normal. The improvement stems from the trade in durables, although this specific confidence indicator remains below the historic average.

The service sector is the only sector to report somewhat weaker signals in August than in the previous month. The confidence indicator dropped 1.6 points, but is still above the historic average.

Household confidence increased for the third consecutive month. In particular, opinions about how people’s own finances have developed over the past year have improved since the previous survey.