The Confederation of Finnish Industries (EK) published a cyclical barometer on Thursday with a message urging moderation for the ongoing incomes talks

The results of the survey of sentiments within the Finnish business community suggests that uncertainty about the world economy has grown, which weakens expectations for the future. The most cautious views are expressed in the manufacturing industries. Expectations are best in construction and services, which are included in the cyclical barometer now for the first time. Views within Finnish industry are cautiously optimistic. Production and orders from abroad have grown from the early summer, and no changes are in sight early next year. However, there are differences within the sector. For instance, orders within the forest industry have gone down. Sales prices, for instance in the technology and forest industries, have also not risen as much as had been hoped. One in five industrial companies have capacity for new orders. Extra capacity is available especially in the textiles and clothing industries and in the forest industry. The rate of job losses appears to have declined. However, the number of personnel is not expected to grow in the last two months of the year. The most optimistic sector was that of commerce, while the most negative prospects were seen in transport. EK Director-General Leif Fagernäs says that the world economy is overshadowed by the rise in the price of oil and the weakening of the US dollar, which hurts the export prospects of the whole euro zone. Fagernäs fears that the business cycle may be at its peak right now, and that Finland has not managed to fully take advantage of it. The low employment rate as one of Finland’s main problems by Fagernäs. He says that it cannot be improved on the basis of present rates of growth alone. With this in mind, he challenged the sides in the ongoing incomes talks to increase the amount of local decision-making in wage formation. EK feels that taxation measures should be enacted to support employment, and that tax cuts should be targeted equally at all income groups.