Business outlook for service companies

Last updated 18/06/2020 - 07:54

Service sector business outlook crashed in the entire country

The service sector’s economic conditions in the entire country has weakened considerably during spring 2020 due to the coronavirus. Service sector companies estimated that economic conditions had declined rapidly, and their sales levels did decline sharply during the spring. In addition, business outlook for the coming months is currently very poor. Restrictions during the coronavirus epidemic have especially impacted the service sector and slow lifting of the restrictions has made expectations even gloomier. The business outlook balance indicator dropped to -64 in April, when January saw the indicator still at -6. The amount of staff in the service sector has been declining and companies in the sector estimate that there will be a clear drop by the summer.

Economic conditions of service sector companies in Uusimaa crashed at once due to the coronavirus crisis. The balance figure describing the current situation dropped to -61 in February, when in January it was still 9. The business outlook for the coming months also sunk considerably low. The business outlook balance indicator was -59 in April, despite it being an almost neutral -2 in January. Of all service sector companies, 61 per cent expected the situation to worsen and 37 per cent expected the situation to remain stable. Only two per cent of service sector companies in Uusimaa expected the outlook to improve. In the Uusimaa region, service sector companies’ business outlooks are slightly brighter than the national average.