Statistics Finland released the service sector revenue update for May 2023. According to the data, seasonally adjusted service sector revenue rose by 5.7% compared to May 2022. Concurrently, service production, which removes the impact of price changes, increased by 2.7%. In April 2023, revenue saw a growth of 6.4%, with volume also rising by 2.8%. It’s important to note that the trade sectors are not included in the service sector statistics.
Key Highlights:
- Decline in Revenue in the Transport and Storage Sector: In May 2023, the seasonally adjusted revenue in the transport and storage sector decreased by 0.6% compared to May 2022, while the volume of the sector also experienced a decline of 6.7%. This sector has been witnessing a drop in volume since September 2022, influenced by a significant increase in prices within the industry during 2022.
- Growth in Other Service Sectors: Other main service sectors showed positive growth in May 2023 compared to the previous year. The real estate industry recorded the highest increase in revenue, rising by 9.9% since May 2022, with volume also growing by 6.0%. Accommodation and food services experienced a 9.6% increase in revenue and a 3.3% rise in volume.
- Ample Growth in Professional, Scientific, and Technical Activities: The revenue in this sector increased by 8.2% in May 2023 compared to May 2022, with volume rising by 6.5% during the same period. The sub-sectors of information and communication, as well as other professional services, both exhibited a 7.0% increase in seasonally adjusted revenue. Within the information and communication sector, the volume increased by 4.7% in May 2023.
- Positive Performance in Administrative and Support Services: The seasonally adjusted revenue in this sector rose by 6.9% in May 2023 compared to May 2022. Simultaneously, volume grew by 2.6%. However, the arts, entertainment, and recreation sector only saw a 1.0% increase in seasonally adjusted revenue from May 2022.
Overall, the service sector’s seasonally adjusted revenue increased by 0.4% in May 2023 compared to April 2023, while service production volume also grew by 0.2%. The upward trend in both revenue and volume continued from the previous month, indicating a positive trajectory for the service industry in Finland.