Economic Tendency Indicator climbs 3.4 points and is back above average
The Economic Tendency Indicator rose 3.4 points from 98.2 in September to 101.6 in October. The indicators for all sectors except private services increased. The manufacturing indicator climbed furthest, by 6.7 points, after dropping almost as far in September. The services indicator fell 1.7 points. All of the confidence indicators are now above their historic averages, with the exception of the indicator for the building and civil engineering industry, which is still slightly more than 5 points below the historic average.
Employment set to stabilise
The confidence indicator for the manufacturing industry gained 6.7 points in October and is once again just above the historic average. Orders from the domestic market have risen in recent months, while export demand has softened somewhat. Output volume has increased, and plans indicate stronger growth in the coming months. Employment is expected to fall further, but the percentage of firms anticipating cutbacks is smaller than before.
The confidence indicator for the building and civil engineering industry gained 2.3 points in October but remains slightly more than 5 points below the historic average. The order situation is still much weaker than normal, but firms are optimistic about the fourth quarter and expect both order books and output to improve. Their employment plans, however, indicate further cutbacks.
The confidence indicator for the retail trade gained 4.1 points in October and is now slightly more than 2 points above the historic average. The indicators for the food trade, the motor trade and the specialist retail trade all rose, but the indicator for the specialist retail trade is still well below the historic average. The retail trade is optimistic about the fourth quarter and anticipates a substantial increase in sales.
The confidence indicator for the private service sector fell 1.7 points in October but is still 3 points above the historic average. Demand has picked up in recent months, and firms anticipate substantial growth in the fourth quarter. Their employment plans also indicate improvements.
Households optimistic
The Consumer Confidence Indicator climbed 4.1 points from 97.9 in September to 102 in October, which is 2 points above the historic average and indicates that households are more upbeat than normal. Households have become more positive about both their personal finances and the Swedish economy.
Please observe! As of next year, the publication time for NIER reports will change to 09:00 CET.
For further information please contact:
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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