Confidence remains high
The Economic Tendency Indicator continues to point to a buoyant mood among both firms and consumers. Despite falling from 113.7 in December to 112.0 in January, it remains well above the historical average. All of the business sector indicators other than that for the retail trade are above, or well above, normal levels. Consumer sentiment improved somewhat in January, but this related mainly to personal finances.
Firms in all sectors have seen an increase in employee numbers in recent months, but a high proportion are still reporting labour shortages. Recruitment plans are as optimistic as before and signal strong employment growth in the private sector.
Prices are reported to have increased overall in the past three months, and firms’ overall view of their profitability has improved since October. A higher proportion of firms now plan to raise their prices in the next three months.
The confidence indicator for the manufacturing industry fell back slightly after the big jump in December but still points to a very strong situation. Firms report good growth in orders and production in recent months and are relatively happy with their order books. Production plans for the next three months are also still very optimistic.
The confidence indicator for the building and civil engineering industry climbed back above the 110 mark, pointing to a much stronger situation than normal. Firms are happy with their order books, and expectations for both orders and activity levels over the next three months remain very optimistic.
The confidence indicator for the retail trade fell for a third month to just below the historical average. This low level is due mainly to more downbeat specialist retailers.
The share of firms in the service sector that consider labour shortages the main factor currently limiting their activity has increased for three successive quarters to its highest level since early 2003.
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
Tags: