Four out of five Finnish companies expect their revenue to either grow or remain stable during the next six months, according to a new business survey by the Finland Chamber of Commerce.
The survey, conducted in April among 1,310 companies across Finland, found that 36 percent expect revenue growth while 45 percent expect turnover to remain unchanged. About 19 percent anticipate a decline, the business organization that represents Finnish companies wrote in a report published yesterday.
The findings were slightly weaker than in January’s survey, but still point to largely positive business expectations.
“The recovery has not been canceled,” said Jukka Appelqvist, chief economist at the central body for Finland’s regional chambers of commerce.
Companies also reported relatively positive expectations for order books and exports. Around 31 percent expect order volumes to increase over the next six months, while fewer than 19 percent foresee a decline.
Export expectations weakened somewhat compared with January, but remained strong overall. Nearly 32 percent of exporting companies expect exports to grow this year, while 13.5 percent predict a decline.
The survey highlighted clear differences between sectors. Construction companies continued to report the weakest order book situation, while industrial companies said order volumes had improved significantly.
Profitability expectations, however, deteriorated. Nearly 32 percent of respondents expect profitability to weaken during the next six months, compared with just under 30 percent expecting improvement.
According to Appelqvist, rising energy and raw material costs linked to the conflict involving Iran have increased pressure on companies. Many firms are finding it difficult to pass higher costs on to customers, squeezing margins despite stable demand.
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