Positive momentum in industry comes to a halt

Statistics Finland published industrial order and production figures for October on Wed. 10 Dec. The value of new orders in October was 3.7% lower than in October last year.

New industrial orders had grown for eight consecutive months before the upward trend came to an end. In January–October, the value of new orders was 6.9% higher than a year previously. Orders declined most sharply in the chemical industry, where their value fell by 27.3%.

“Despite the month-on-month decline seen in the autumn, order figures for the current year continue to justify cautious optimism. Strengthening demand in industry lays the groundwork for a pickup in economic growth,” says Roope Ohlsbom, an economist at Suomen Yrittäjät, the Finnish SME association.

“Industrial orders would probably have continued to grow without Donald Trump’s erratic trade policy. Fortunately, the uncertainty created by US tariff policy has eased since the spring, and over the longer term industrial recovery can be expected to continue. The global economy is growing, and Finland will benefit from that,” Ohlsbom says.

Seasonally adjusted industrial output increased by 2.4% in October compared with September. Industry’s working-day adjusted output grew by 2.3% compared with a year earlier.

“The growth in new orders that has continued for most of the year is starting to be felt in industrial output with a delay, so the recovery in production is likely to strengthen next year. Uncertainty remains, but positive signals have become more pronounced over the past year. An economic upswing often begins in industry,” Ohlsbom notes.

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