Finnish manufacturing companies became more pessimistic as Europe’s slump hurts exports, a survey by the Confederation of Finnish Industries showed.
About half of industrial companies suffer from overcapacity, according to the Helsinki-based organization. The manufacturing outlook index fell to minus 32 in October from minus 3 in July as 34 percent of respondents expect the economy to weaken over the next six months. Only 2 percent forecast an improvement.
Europe’s debt crisis and slowing global growth are hurting demand for Finnish companies’ goods abroad. Order books are seen falling further and personnel numbers are expected to decline in the coming months, the survey showed. Sales abroad account for about 40 percent of the northernmost euro member’s economy.
Outlook in construction and services also dipped and all main industries estimated a decline in employment toward the end of the year.
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