In March, there was a decline in industrial production, with Statistics Finland attributing this drop to factors such as labor disputes and maintenance shutdowns. Seasonally adjusted industrial production decreased by 3.9 percent from the previous month and overall production dropped by 7.7 percent from a year ago.
The electricity, gas, heating, and air conditioning maintenance industry and the forest industry were hit the hardest by the decrease in production, while mining and quarrying saw growth, as did the food industry. Labor disputes had a significant impact on the forest industry, while maintenance shutdowns led to decreased production in other industries.
In addition to decreased production, the value of new orders in industry also declined by about 19 percent in March compared to the previous year. The technology industry was particularly affected, with order flows thinner than before due to challenges faced by companies in Teknologiateollisuus ry’s order base and personnel survey.
Despite this grim outlook based on order development, companies in the technology industry have slightly improved expectations for the future. This optimism is tied to expectations of a drop in interest rates, although the timing and impact of this reduction on the real economy remain uncertain. The ECB is expected to lower its key interest rates in June, which could have implications for demand stimulation in the future.
