All confidence indicators point down for second consecutive month
The Economic Tendency Indicator fell nearly seven points in November from 92.7 to 86.0, indicating that growth in the Swedish economy is currently considerably weaker than normal. All sectors of the economy made a negative contribution in November, as last month. The Consumer Confidence Indicator also fell considerably in November.
Increasingly weak employment
The confidence indicator for the manufacturing industry fell two points in November on the previous month and is now 14 points below the historic average. New orders from both the domestic and export markets declined, and dissatisfaction with the order situation is considerably higher than normal. Output and employment both declined during the period. The industry forecasts further staff cuts and unchanged output volume for the next few months.
Construction activity has weakened considerably over the past few months. In November the confidence indicator fell a further couple of points, and new orders, construction output and employment declined. Construction firms are pessimistic about the next few months, forecasting a continued decline in new orders, construction output and employment. Moreover, further price reductions are planned.
The confidence indicator for the retail trade declined two points in November and is now nine points below the historic average. As previously, there are major differences between the various sectors. The food trade experienced the strongest growth, while the motor vehicle trade experienced the weakest growth. The food trade and the specialist retail trade are the most optimistic about the next few months. The motor vehicle trade forecasts largely unchanged volumes.
The confidence indicator for the private service sector fell fully 13 points in November and is thus nearly 30 points below the historic average. Demand and employment both declined and the demand outcome in particular was considerably weaker than service firms had forecast. Service firms forecast largely unchanged demand and employment for the next few months.
More households anticipate increased unemployment
The Consumer Confidence Indicator (CCI) fell 4.5 points in November from -2.9 to -7.4 and is thus 12.5 points below the historic average, indicating that consumer confidence in the economy is more negative than normal. In particular, consumer confidence in the Swedish economy and labour market developments is considerably more negative than normal.
For further information:
Roger Knudsen, Head of Economic Tendency Survey +46-8-453 59 06
Maria Billstam, Economic Tendency Survey +46-8-453 59 04
Sarah Hegardt Grant, Head of communications +46-8-453 59 11, +46-70-267 80 41