Economic Tendency Survey: Rising at a leisurely pace
The Economic Tendency Indicator climbed 2.4 points from 100.8 in July to 103.2 in August, its highest level since February. The manufacturing indicator rose 5.1 points and accounted for the bulk of the increase. The services indicator also gained a couple of points, while the retail and consumer indicators dropped 3.2 and 2.7 points respectively, and the building and civil engineering indicator also fell slightly.
No major changes in employment
The confidence indicator for the manufacturing industry gained 5.1 points in August and is now once again well above the historical average. All three questions included in the indicator contributed to the increase: the assessment of current stocks of finished goods was more positive, the assessment of current order books was less negative, and production plans were revised up.
The confidence indicator for the building and civil engineering industry fell 0.5 points in August and remains well above the historical average. Of the two questions included in the indicator, the assessment of current order books made a negative contribution, while employment plans were slightly more positive.
The confidence indicator for the retail trade dropped 3.2 points in August but is still well above the historical average. All three questions included in the indicator made a negative contribution: the biggest downward revision from July was for historical sales, while the negative contributions from the assessment of stocks of goods and expectations for sales in the coming months were more marginal.
The confidence indicator for the private service sector rose 1.9 points in August, taking it back above the historical average. All three questions included in the indicator made a positive contribution: both historical demand and firms' assessment of how their operations have developed were slightly better, and expectations for demand in the coming months were more optimistic.
Households negative about major purchases
The consumer confidence indicator fell 2.7 points from 99.6 in July to 96.9 in August, a level which indicates that households are more pessimistic about the economy than normal. It was primarily consumers’ view of major purchases, both at present and over the next 12 months, that contributed negatively in August.
For further information:
Roger Knudsen, Head of Economic Tendency Surveys +46 8 453 59 06
Maria Billstam, Assignments, methods and samples +46 8 453 59 06
Sarah Hegardt Grant, Head of Communications +46 8 453 59 11