Economic Tendency Indicator at its highest since summer 2011
The Economic Tendency Indicator rose 2.1 points from 104.0 in November to 106.1 in December and has gained more than 14 points over the past seven months. The indicators increased in all sectors except the retail trade, where the indicator was unchanged. The biggest climber was the building and civil engineering industry, which gained almost 4 points. For the first time in almost three years, all of the confidence indicators are above their historical average.
Employment expected to grow
The confidence indicator for the manufacturing industry gained 1.1 points in December and is well above the historical average. Only one of the three questions included in the indicator made a positive contribution: the assessment of current stocks of finished goods was more positive than before, but production plans were unchanged from November, and the assessment of current order books was slightly more negative.
The confidence indicator for the building and civil engineering industry gained 3.8 points in December and is now just above the historical average. Both questions included in the indicator made a positive contribution: employment plans were revised up significantly, while the assessment of current order books changed only marginally.
The confidence indicator for the retail trade was unchanged from November to December at almost 4 points above the historical average. One of the three questions included in the indicator made a positive contribution: the assessment of stocks of goods was less negative than before, while expectations for sales in the coming months were unchanged, and historical sales were less positive than in November.
The confidence indicator for the private service sector climbed 3.0 points in December after falling for two months and is now 5.7 points above the historical average. All three questions included in the indicator made a positive contribution: expectations for demand were revised up substantially, while historical demand and firms’ assessment of how their operations have developed made a more marginal contribution.
Consumers remain upbeat
The Consumer Confidence Indicator rose 0.6 points from 104.8 in November to 105.4 in December. Three of the five questions included in the indicator made a positive contribution: consumers were more positive about the current state of their personal finances, whether this is a good time to make major purchases, and the outlook for the Swedish economy over the next 12 months, while their view of the current state of the Swedish economy and expectations for their personal finances over the next 12 months made a negative contribution.
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
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