In March, industrial production experienced a significant decrease, with Statistics Finland attributing the decline to factors such as labor disputes and maintenance shutdowns. The drop in production was evident across almost all main industries, with the electricity, gas, heating, and air conditioning maintenance industry and the forest industry being the most affected.
The value of new orders in industry saw a decline of about 19 percent in March compared to the previous year. Additionally, the technology industry experienced a notable decline in new orders received in January-March compared to the same period last year. This was largely due to challenges faced by the industry, including thin order flows and a lower order base than before.
Despite this grim outlook based on order development, companies in the technology industry have slightly improved expectations for the future. This optimism is largely tied to expectations of a drop in interest rates, although the timing and impact of this reduction on the real economy remain uncertain. The ECB is expected to lower its key interest rates in June, which could have implications for demand stimulation in the future.