All confidence indicators fell in October
The Economic Tendency Indicator fell just over three points in October from 95.6 to 92.3, indicating that growth in the Swedish economy is currently appreciably weaker than normal. This month all sectors of the economy made a negative contribution. The Consumer Confidence Indicator also fell in October.
Reduced business sector employment
The confidence indicator for the manufacturing industry fell five points in October and is now 12 points below the historic average. New orders, output volume and employment declined in the third quarter and dissatisfaction with the size of order books rose. However, the inventory situation is stable and firms are satisfied with the size of finished goods inventories. Industrial firms do not forecast a recovery in the fourth quarter this year.
The confidence indicator for the construction industry fell ten points in October and has thus fallen just over 40 points since April this year. It is now considerably below the historic average. New orders and construction output have declined and firms have further reduced staffing. Construction firms forecast no improvement for the fourth quarter this year and are also relatively pessimistic in the longer term. More than one in three firms forecasts a continued weakening of the construction market one year ahead, while only around one in ten firms anticipates an improvement.
The confidence indicator for the retail trade fell a couple of points in October and is now five points below the historic average. Considerable differences remain between the various sectors of the retail trade. The motor vehicle trade reports reduced sales, while retail food sales have continued increasing. Specialist retail sales showed considerably weaker than expected growth in the third quarter, but firms remain optimistic, forecasting increased sales in the future. The food trade also forecasts increased sales volumes.
The confidence indicator for the private service sector fell six points in October and is thus considerably below the historic average. Demand remained largely unchanged in the third quarter, while employment fell somewhat. The outcome was weaker than service firms had forecast. Other parts of the private service sector will not be published today due to a fault. The fault in calculation related to the private service sector lowered The Economic Tendency Indicator with approximately 0.3 points in July. August and September were correct.
Sharp fall in consumer confidence in Swedish economy
The Consumer Confidence Indicator (CCI) fell nearly five points in October from 2.0 in September to -2.9. The indicator fell for the third consecutive month and is considerably below the historic average, signalling that households are more pessimistic than normal. Households are particularly pessimistic about the Swedish economy and labour market developments.
For further information:
Roger Knudsen, Head of Economic Tendency Surveys +46-8-453 59 06
Sarah Hegardt Grant, Head of communications +46-8-453 59 11, +46-70-267 80 41
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