Finland’s Industrial Production Declines in March Due to Labor Disputes, Maintenance Shutdowns and Technology Sector Challenges

In March, Finland reported a decline in industrial production, according to Statistics Finland. The reasons for this decrease were attributed to factors such as labor disputes and maintenance shutdowns. Seasonally adjusted industrial production fell by 3.9 percent from the previous month and was down by 7.7 percent compared to the previous year.

Almost all main industries experienced a decrease in production in March, with the electricity, gas, heating, and air conditioning maintenance industry, as well as the forest industry, seeing the most significant declines. However, there were two sectors that saw growth in production – mining and quarrying and the food industry.

The forest industry was particularly affected by labor disputes, while maintenance shutdowns impacted production in the electricity, gas, heating and air conditioning maintenance industry. New orders in the forest industry were also down by about 19 percent in March compared to the previous year.

In addition to this, the technology industry faced challenges with a decrease in new orders of 15 percent compared to the previous quarter and 22 percent lower than the same period last year. Despite slightly improved future expectations linked to potential interest rate drops, companies are cautious in their outlook as they wait for economic stimuli.

The European Central Bank is expected to lower key interest rates in June which could help stimulate demand in the real economy. However, the timing and impact of reduced interest rates on economic conditions remain uncertain