The Finnish industrial sector continues to suffer from poor performance, both in terms of production and new orders.
According to Statistics Finland, industrial output adjusted for working days was 2.4% lower in August 2020 than in the same month of 2019. So far this year (January to August), industrial production fell by 3.1% year-on-year.
The only good news is that the decline may be coming to an end: in monthly terms, production grew 2% in August compared to July.
Among the main industries, the fall was still strongest compared to one year back in mining and quarrying, where output declined by 26.8%. In the forest industry, output decreased by 11% and in the chemical industry by 4% compared with August 2019. In turn, the electrical and electronics industry grew most year-on-year, by 13.6%.
Compared with the previous month (July), seasonally adjusted industrial output grew most in August in the electrical and electronics industry, by 13.4%. Output grew in mining and quarrying and in the metal industry by 4.8%.
The decline in output was strongest in electricity, gas, steam and air conditioning supply, where output decreased by 4.8% from the month before. In the forest industry, the fall amounted to 2.2% and in the chemical industry to 1% compared with July.
The failing development of new orders in manufacturing in recent months continued in August.
According to Statistics Finland, the value of new orders in manufacturing was 17.3% lower in August 2020 than twelve months earlier. During January to August, orders decreased by 14.7% from the year before. Orders have declined continuously for eight months.
Source: Statistics Finland.
Examined by main industry, orders decreased by 24% in the industry of the manufacture of paper and paper board products and by 19.1% in the metal industry from twelve months earlier. By contrast, new orders grew by 3.6% in the chemical industry from the year before.