Finland reports strong exports in July, manufacturing likely to have risen

Finnish exports for the month of July came in as strong as was anticipated. The value of exports rose 20 percent year-on-year, mainly due to the point of comparison as July 2016 happens to be the lowest point in the second half of last year, noted Nordea Bank in a research report. However, the level of exports did not alter from the average of past six months. Higher levels are required in the future, because otherwise the rate of growth is bound to decelerate.

Another offering of interesting data is on the pipeline this week when Statistics Finland comes out with new manufacturing orders from July. New orders are characterized by a rising trend, which is promising, with occasional huge peaks coinciding with huge ship orders, stated Nordea Bank.

The value of orders rose nearly 12 months year-on-year in June. Assuming that the trend does not alter much, a rate of around 8 percent to 10 percent would be expected. However, in the absence of major surprises, only the metal and chemical industries are expected to reach order growth of about 10 percent. The forest and textile industries currently have comparatively flat order flow trends that could possibly yield 0 percent to 2 percent improvements in July.

“Therefore, for manufacturing as a whole, expect an increase keeping in mind that hopes for a 8-10% improvement may land slightly on the positive territory”, added Nordea Bank.

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