A business trends survey conducted by the Confederation of Finnish Industries EK shows weaking confidence in the economy. Businesses interviewed for the survey said the economic downturn was steeper than they anticipated three months ago.
In a survey of 1,100 companies representing 289,000 workers, the Confederation found that more than half of busineses in the industrial sector and over 70 percent in the manufacturing sector expected a slowdown in business in 2008 and into 2009.
Businesses surveyed reported stalled production growth the in industrial, construction, and services sectors. Moreover, companies' backlog of orders are dwindling, as few new orders are showing up on the books.
Factories aren't running at full capacity, and as a result, fewer new employment contracts are being signed. According to the Federation, this all points to Finland having to prepare for a long downward economic slide.
At the same time, the organisation says that there's another side to the coin. Some sectors and businesses are more sensitive to global conomic tides than others. For example, smaller companies that are not as closely linked to the global economy appear to be more immune to the negative economic contagion.
In spite of small glimmers of hope, the economists are being very wary, warning that it's best to prepare for the worst, than to be caught unawares.
