Economic Tendency Indicator gains 2.7 points in June
The Economic Tendency Indicator climbed 2.7 points from 91.8 in May to 94.5 in June. It is now 5.5 points below the historic average and indicates that growth in the Swedish economy is still weaker than normal. The manufacturing industry, the retail trade and the private service sector made a positive contribution this month, while the indicator for the building and civil engineering industry was almost unchanged. The Consumer Confidence Indicator improved marginally in June.
Further cutbacks in industry
The confidence indicator for the manufacturing industry gained 4 points in June and is now slightly more than 5 points below the historic average. All three questions underlying the indicator made a positive contribution: the assessments of new orders and inventories were less negative, and production plans are slightly more optimistic than in May. Employment in the industry has fallen further, however, and plans point to further cutbacks.
The confidence indicator for the building and civil engineering industry was largely unchanged in June and is well below the historic average. New orders have risen again slightly, but both construction output and employment have continued to decrease. Tender prices have also fallen somewhat. Firms are relatively pessimistic and expect both output and employment to decline further in the coming months.
The confidence indicator for the retail trade gained more than 4 points in June and is now slightly less than 3 points below the historic average. Retail sales as a whole have been largely unchanged in recent months, but there are still variations between sectors. The food trade is reporting continued sales growth, while both the motor trade and the specialist retail trade are reporting a slight decrease. The retail trade is optimistic and anticipates appreciable sales growth in the coming months. Optimism is greatest in the food trade and the specialist retail trade.
The confidence indicator for the private service sector rose 1.5 points in June and is now slightly less than 3 points below the historic average. Demand has picked up in recent months, while employment has decreased somewhat. Service firms expect demand to continue to climb slightly in the coming months, while employment is expected to be largely unchanged.
Consumer confidence unchanged
The Consumer Confidence Indicator gained 0,5 point in June and is now a little less than 2 points below the historic average. 3 of the 5 questions underlying the indicator made a positive contribution in June. Consumers’ assessment of the Swedish economy, both at present and 12 months ahead, was less negative than in May, as was their assessment of their personal finances 12 months ahead, but they were more negative about both their personal finances at present and purchases of capital goods at present.
Read more about the new confidence indicators on www.konj.se/newindicators
For further information:
Roger Knudsen, Head of Economic Tendency Surveys +46-8-453 59 06
Maria Billstam, Assignments, methods and samples +46 8 453 59 04
Sarah Hegardt Grant, Head of communications +46-8-453 59 11
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