Economic Tendency Indicator heading down towards normal levels
The Economic Tendency Indicator fell 2.5 points from 104.0 in February to 101.5 in March. Together with the decrease of 3.1 points in February, it has now fallen 5.6 points in two months. All of the indicators declined. The indicators for manufacturing and for building and civil engineering fell furthest, by 3.2 and 3.6 points respectively, and are now close to their historical averages. The consumer indicator edged down a tenth of a point and is also close to the historical average, while the retail and private services indicators are still well above their historical averages.
Total business sector confidence has fallen just over 5 points in two months
The confidence indicator for the manufacturing industry fell 3.2 points in March after dropping 4.2 points in February, and is now close to the historical average. Two of the three questions included in the indicator contributed to the decrease: the assessment of current stocks of finished goods was less positive and the assessment of current order books was more negative, while production plans were more optimistic.
The confidence indicator for the building and civil engineering industry fell 3.6 points in March and is now back close to the historical average. Both questions included in the indicator made a negative contribution: the assessment of current order books deteriorated and employment plans were revised down.
The confidence indicator for the retail trade dropped 1.2 points in March but is still well above the historical average. Only one of the three questions included in the indicator contributed to the decrease: the assessment of stocks of goods was much less positive, while historical sales were more positive, and expectations for sales in the coming months were more optimistic.
The confidence indicator for the private service sector fell 1.9 points in March, almost as far as in February, and is now 4 points above the historical average. All three questions included in the indicator contributed to the decrease: historical demand was lower, expectations for demand in the coming months were somewhat less optimistic, and firms’ assessment of how their operations have developed was less positive.
Consumers less optimistic about economy
The consumer confidence indicator edged down a tenth of a point from 99.7 in February to 99.6 in March and is now just below the historical average. Three of the five questions included in the indicator made a negative contribution: the largest negative changes were in the assessment of the Swedish economy both at present and over the next 12 months, while consumers’ view of the current state of their personal finances was also more negative.
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