Consumers more confident in the economy in August

The Economic Tendency Indicator, which summarises how firms and consumers view the economy, climbed for a second month from 103.2 in July to 104.6 in August. All four subdivisions of the business sector contributed to the increase, and consumer sentiment also improved. The business sector indicators all point to a stronger situation than normal, while the consumer indicator is in line with the historical average.

Strong situation across the business sector

The confidence indicator for the manufacturing industry edged up from 104.2 in July to 104.8 in

August, exceeding the historical average for a fourth successive month. The increase was due to firms

being more positive about their order books, while their assessment of stocks of finished goods and

production plans over the next three months were largely unchanged.

The confidence indicator for the building and civil engineering industry also edged up, from 105.4

in July to 105.9 in August, and again this was due to firms being more satisfied with the size of their

order books. Expectations for employment over the next three months, which are the other question

included, were slightly more subdued than in July, but firms remain significantly more optimistic than

normal in their employment plans.

The confidence indicator for the retail trade climbed 3.5 points in August to 111.1, which points to a

much stronger situation than normal. All three questions included in the indicator contributed to the

rise: sales were reported to have grown more quickly than in July, expectations for sales over the next

three months were even more optimistic, and firms’ assessment of stocks of goods improved somewhat

and remains less negative than normal.

The confidence indicator for the private service sector climbed from 103.6 in July to 104.8 in August.

Firms’ positive view of how their operations have developed in recent months was unchanged, while

historical demand was reported as having grown more strongly than in July. Expectations for demand

over the next three months were marginally less positive but remain more optimistic than normal.

Confidence in the economy improved somewhat in august

The consumer confidence indicator climbed from 97.3 in July to 100.1 in August, which is in line with

the historical average. All of the questions included in the indicator contributed to the rise. Consumers’

view of their personal finances at present was a little more positive than in July, and expectations for

their personal finances over the next 12 months were slightly more positive. Consumers’ assessment of

the Swedish economy remains more negative than normal, but their view of both the current situation

and the outlook for the next 12 months improved somewhat. Consumers were also more positive

about whether now is a good time to make major purchases.

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: