Home > Statistics > Quarterly national accounts > 2016 > 3rd quarter > Output of Finland’s national economy grew in July to September, especially manufacturing industries developed favourably

Output of Finland’s national economy grew in July to September, especially manufacturing industries developed favourably

In the July to September period of 2016, the seasonally adjusted volume of Finland’s gross domestic product increased by 0.4 per cent from the previous quarter. GDP adjusted for working days grew by 1.6 per cent compared to the third quarter of 2015. Calculated at current prices, gross domestic product adjusted for working days was 2.3 per cent higher than one year ago.

Figure 1. Volume change of GDP from the previous quarter, seasonally adjusted, per cent

According to preliminary data compiled by Eurostat, GDP in the EU-28 area grew by 0.4 per cent in the third quarter of 2016 compared to the previous quarter.

Production

The volume of total value added generated by all industries increased by 0.3 per cent from the previous quarter and by 1.2 per cent from twelve months back.

Figure 2. Changes in the volume of value added generated by industries in the third guarter of 2016 compared to one year ago, working-day adjusted, per cent

Figure 3. Changes in the volume of value added generated by industries in the third guarter of 2016 compared to the previous guarter, seasonally adjusted, per cent

In primary production, that is, agriculture, forestry and fishing, the volume of value added declined in the third quarter of 2016 by 1.7 per cent from the previous quarter and by 1.6 per cent from one year previously. The value added in agriculture remained on level with the year before but forestry decreased by 1.0 per cent from the third quarter of 2015.

In July to September, the value added in manufacturing industries grew by 1.0 per cent from the previous quarter and by 3.7 per cent from the third quarter of 2015. The volume of the forest industry increased by 5.5 per cent and that of the chemical industry by 7.6 per cent from a year ago. The volume of the metal industry (excl. electrical and electronics industry) increased by 4.2 per cent and that of the electrical and electronics industry by 4.6 per cent year-on-year.

The construction industry grew by 1.2 per cent in July to September from the previous quarter and by 3.7 per cent year-on-year.

In service industries, value added increased by 0.1 per cent from the previous quarter and by 0.5 per cent year-on-year. Compared with the previous year, value added in private services grew by 1.5 per cent but value added in public services fell by 1.8 per cent. The value added of trade was 0.2 per cent down on the previous quarter but 1.7 per cent up on the respective quarter twelve months back. Business activities (industries M and N) grew by 6.2 per cent and accommodation and restaurant activities by 2.0 per cent from one year ago. Financial and insurance activities also grew by 3.2 per cent from the third quarter of 2015. By contrast, public administration, education and human health and social work activities contracted by 2.1 per cent from twelve months back.

Imports, exports, consumption and gross fixed capital formation

In July to September, total demand decreased by 0.4 per cent compared with the previous quarter but increased by 2.4 per cent year-on-year. Growth in fixed capital formation and, in particular, in households’ consumption expenditure increased demand in the national economy from twelve months ago.

Figure 4. Changes in the volume of main supply and demand items in the third quarter of 2016 compared to one year ago, working-day adjusted, per cent

Figure 5. Changes in the volume of main supply and demand items in the third quarter of 2016 compared to one year ago, seasonally adjusted, per cent

In July to September of 2016, the volume of exports decreased by 3.4 per cent from the previous quarter. Compared to one year ago, the volume grew by 1.4 per cent but calculated at current prices, the value of exports decreased by 1.6 per cent. The volume of goods exports grew by 2.9 per cent but as a result of decreasing prices, the current priced value contracted by 0.8 per cent year-on-year. The volume of exports of services decreased by 2.3 per cent year-on-year.

The volume of imports contracted by 3.3 per cent from the previous quarter but increased by 0.7 per cent year-on-year. Imports of goods declined by 0.3 per cent but those of services grew by 3.2 per cent year-on-year.

In the third quarter, the volume of private consumption grew by 0.5 per cent from the previous quarter and by 2.1 per cent from the corresponding quarter in 2015. Public consumption expenditure grew by 0.1 per cent from the previous quarter and by 0.8 per cent from the third quarter of 2015.

Gross fixed capital formation, or investments, fell by 0.3 per cent from the previous quarter but grew by 3.1 per cent year-on-year. Private investments went up by 1.3 per cent year-on-year. Public investments grew by 11.5 per cent from twelve months ago, which is partially explained by the fact that the comparison figure from twelve months ago was exceptionally low due to employment pension schemes selling real estate holdings in the third quarter of 2015.

Investments in residential buildings grew by 4.0 per cent from the third quarter in 2015, other building construction investments by 9.4 per cent and civil engineering investments by 4.3 per cent. The volume of gross fixed capital formation in machinery, equipment and transport equipment fell by 3.7 per cent. It is estimated that intangible investments (incl. R&D investments) grew by 2.5 per cent year-on-year.

Employment, wages and salaries and national income

The number of employed persons increased by 0.3 per cent in the third quarter from the previous quarter and by 0.9 per cent year-on-year. The number of hours worked in the national economy grew by 0.6 per cent from the previous quarter and by 0.8 per cent from one year back.

According to Statistics Finland’s Labour Force Survey, the rate of unemployment for the July to September period was 7.6 per cent. In the corresponding period of last year it stood at 8.4 per cent.

In the third quarter, the nominal wages and salaries bill of the national economy grew by 1.1 per cent from the previous quarter and by 3.1 per cent year-on-year. Social contributions paid by employers grew by 4.2 per cent from last year.

The operating surplus (net), which in business bookkeeping corresponds roughly with operating profit, grew by 0.4 per cent from twelve months back. Gross national income calculated at current prices was 0.7 per cent higher than one year previously.

The available data

These preliminary quarterly data are based on the source information on economic development that had become available by 28 November 2016.

The annual level data for 1990 to 2015 correspond with the National Accounts data released on 14 July 2016, except for those on the rest of the world sector (imports, exports, primary income from/to the rest of the world), which may have become revised.

Data concerning the last quarter of 2016 will be released on 1 March 2017, when the data for earlier quarters will also be revised. A flash estimate on GDP development for October to December will be released in connection with the Trend Indicator of Output on 14 February 2017.

Due to the benchmarking and seasonal adjustment methods, quarterly data in the entire time series may become slightly revised in connection with each release. However, the largest revisions take place during the two to three years following the release on a quarter, because final annual accounts data are published at a lag of around two years from the end of the statistical reference year. Seasonally adjusted and trend time series always become revised against new observations irrespective of whether the original time series becomes revised or not.

The quality description can be accessed at (in Finnish): http://www.tilastokeskus.fi/til/ntp/laa.html .

Methodological description of Quarterly National Accounts.

Source: National Accounts 2016, 3rd quarter. Statistics Finland

Inquiries: Samu Hakala 029 551 3756, Pekka Tamminen 029 551 2460, kansantalous.suhdanteet@stat.fi

Director in charge: Ville Vertanen

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Updated 2.12.2016