Business outlook for service companies

Last updated 27/03/2019 - 09:06

Business conditions will weaken slightly

The economic situation for service sector companies in Uusimaa is prognosed to stay on average at almost the same level in the coming months, and the economic situation remained better than usual at the end of last year and in the beginning of this year. Sales grew and there are positive expectations for the coming months. The tendency survey indicator was -2 (+3 in October) and the outlook of companies in Uusimaa was slightly better than the country’s average. The number of employees stayed at almost the same, taking into account seasonal variations, and the number of employees will likely grow somewhat in the beginning of this year. The lack of professional workforce was an obstacle for production growth for 31 per cent of respondents in the service sector. Profitability at the end of last year was slightly weaker than the year before but is prognosed to grow in the coming months despite the growing costs.

The outlook for the service sector throughout the country will weaken slightly

No changes occurred in the outlook of service sector companies in the entire country, and the situation is described as slightly better than average. Sales grew quite well, and continued growth is expected even during the next six months. However, expectations for the near future have weakened since last autumn, and the prospects are estimated to slow down as we head towards spring. The tendency survey indicator was -5 in the survey carried out in January (+3 in October). Expectations for sales growth are still positive, as similar growth is expected to continue even during the coming months. The number of employees is anticipated to keep growing during the spring months. Profitability stayed at almost the same, and a growing number of respondents estimated that both production costs and sales prices will grow in the coming months. The availability of a professional workforce is still low, and 30 per cent of the respondents had experienced recruitment difficulties.