Industrial Production Takes a Hit in March due to Labor Disputes and Maintenance Shutdowns

In March, industrial production saw a decrease, with Statistics Finland attributing the decline to labor disputes and maintenance shutdowns. Seasonally adjusted industrial production dropped by 3.9 percent from the previous month, while the overall industrial production decreased by 7.7 percent from a year ago.

The forest industry was significantly impacted by labor disputes, while the electricity, gas, heating, and air conditioning maintenance industry suffered from maintenance shutdowns. Despite these challenges, the mining and quarrying industries saw growth, as did the food industry.

In January-March of this year, the technology industry experienced a notable decline in new orders compared to the same period last year due to challenges such as thin order flows and a lower order base in Teknologiateollisuus ry’s survey. However, despite this outlook based on order development, companies in the technology industry have slightly improved their expectations for the future due to expectations of a drop in interest rates. The ECB is expected to lower its key interest rates in June which could have implications for demand stimulation in the future.