Economic Tendency Indicator fell for third consecutive month
The Economic Tendency Indicator fell 1.7 points in June from 100.4 to 98.7 and is now once again below the historic average, indicating that growth in the Swedish economy is slightly weaker than normal. The manufacturing industry and the construction industry were the sectors of the economy that made a negative contribution this month. Consumers also made a negative contribution.
Business sector hiring plans increasingly cautious
The confidence indicator for the manufacturing industry fell three points in June and is currently at the historic average. New orders from the domestic market fell somewhat, while new export orders and output volume remained almost unchanged. Employment seems to have fallen somewhat and plans for the next few months indicate some continued decline. Output volume is expected to increase somewhat.
The confidence indicator for the construction industry fell another six points in June and is currently considerably below the historic average. It has thus fallen over 45 points in 18 months. Over the past few months new orders, output and employment have fallen and tender prices have been reduced. In the housebuilding sector insufficient demand and financial restrictions are the main obstacles to increased activity. In the civil engineering sector the main obstacle was reported to be “other factors”. Construction firms forecast that new orders, output and employment will remain almost unchanged for the next few months.
The confidence indicator for the retail trade was unchanged in June on the previous month and remains somewhat below the historic average. As previously, there are major differences between the various sectors, with the food trade reporting by far the strongest growth, while the motor vehicle trade continues to report declining sales. The food trade and the specialist retail trade are the most optimistic about the next few months, forecasting appreciable sales growth. The motor vehicle trade forecasts largely unchanged volumes.
The confidence indicator for the private service sector rose one point in June and remains somewhat below the historic average. Demand growth has been moderate over the past few months and employment is reported to be unchanged. Service firms forecast rising demand for the next few months, while employment is expected to remain almost unchanged.
Consumers more pessimistic about Swedish economy
The Consumer Confidence Indicator (CCI) fell 2.8 points in June from 5.9 to 3.1 and is thus two points below the historic average, indicating that consumer confidence in the economy is slightly more negative than normal. The Macro Index, which measures consumer confidence in the Swedish economy, fell over eight points and is currently considerably below the historic average. The Micro Index, which reflects consumer confidence in personal finances, fell 0.3 points and remains just above the historic average.
For further information:
Roger Knudsen, Head of Consumer Tendency Survey, +46-8-453 59 06
Sarah Hegardt Grant, Head of Communications, +46-8-453 59 11