Broad-based strength

The Economic Tendency Indicator, which reflects sentiment in the Swedish economy, climbed for a fourth successive month in December to 113.8, which points to much stronger economic growth than normal. The increase was due mainly to a surge in confidence in the manufacturing industry. The services indicator also gained a couple of points, while the retail and construction indicators backed slightly. Consumer confidence was down on November but remains above the historical average.

The confidence indicator for the manufacturing industry jumped 11 points in December to a historically high level. This is a relatively sharp rise from one month to another and can be explained mainly by strong increases in a number of volatile subsectors. A majority of the subsector indicators are above the historical average, however, which signals broad-based strength.

The confidence indicator for the building and civil engineering industry fell 3.2 points in December but still points to a much stronger situation than normal. The decrease was due to firms having a slightly less positive view of their order books and revising down their recruitment plans.

The confidence indicator for the retail trade fell slightly further in December to 101.8. In particular, retailers lowered their expectations for sales volumes in the coming months.

The indicator for the service sector, which has been trending up since June, gained another couple of points in December and is well above normal.

Access the statistical database on www.konj.se/english

For further information:

Maria Billstam, Head of Economic Tendency Surveys +46 8 453 59 04
Sarah Hegardt Grant, Head of Communications +46 8 453 59 11

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