Economic situation deteriorating

The economic situation at the end of August was far worse than at the end of July. Indicators showed deterioration across the board. The heart of the scatter in the Business Cycle Tracer has moved back from the recovery stage to the recession stage. Ten of the fifteen indicators are currently below the level of their long-term average.

The volume of the gross domestic product (GDP) was 1.5 percent higher in the second quarter of 2011 than in the same quarter one year previously. Growth was far less substantial than in the first quarter (2.8 percent). Taking calendar and seasonal effects into account, the economy grew by 0.1 percent in the second quarter compared to the preceding quarter.

Consumer confidence nosedived in August. Producer confidence also dropped. Providers of business services were optimistic about future turnover.

The capital market interest rate dropped 0.1 percentage point in July and stood at 3.2 percent. The inflation rate rose to 2.6 percent. Selling prices in manufacturing industry were 10 percent higher than one year previously.

Seasonally adjusted unemployment increased by 22 thousand in July. In the second quarter there were slightly more jobs of employees than in the first quarter. The number of job vacancies also increased somewhat, so did the number of hours worked in temp jobs.

Gross domestic product (GDP)

More figures can be found in dossier Business cycle.