Economic Tendency Indicator rose over eight points in March
The Economic Tendency Indicator rose in March for the second consecutive month, this time by over eight points. It has thus risen nearly ten points over the past two months and is currently nearly two points above the historic average. All sectors of the economy made a positive contribution to the indicator, while the results from the household sector were also positive.
BUSINESS SECTOR EMPLOYMENT IS STABLE
The confidence indicator for the manufacturing industry rose fully 14 points in March and is currently once again a few points above the historic average. The proportion of firms satisfied with the size of order books increased somewhat in March and output volume has stabilised. Optimism among industrial firms is stronger than for a long time, with firms forecasting substantial output growth for the next few months.
The confidence indicator for the construction industry rose 13 points in March thereby recovering most of the previous month’s sharp decline. It is currently considerably above the historic average. Construction output has increased somewhat and the outcome was better than expected particularly for house builders. However, problems in financing business activities have increased, with nearly 40 per cent of house builders reporting financial restrictions as the main obstacle to activities. Construction companies forecast some increase in both new orders and construction output for the next few months. Civil engineering is the most optimistic sector.
The confidence indicator for the retail trade rose eight points in March. Following the rise in February, it has now increased 12 points over the past two months. However, it remains a few points below the historic average. The retail trade reports increased sales for the past few months following a period of weak sales figures. The food trade reports continued strong growth, the specialist retail trade also reports increased sales. Sales in the motor vehicle trade have fallen over the past few months. The retail trade is optimistic about the next few months, with nearly half of firms forecasting increased sales.
The confidence indicator for the private service sector increased 13 points in March and is currently only one point below the historic average. Overall, demand has increased over the past few months, while employment has remained largely unchanged. Selling prices in the majority of sectors have changed marginally during the period. One of the exceptions is the restaurant sector, where more than half of firms report reduced prices. Service firms forecast a further rise in demand for the next few months. Employment is also expected to increase somewhat, with particularly the consultancy and the restaurant sectors forecasting new recruitment.
HOUSEHOLDS ARE LESS PESSIMISTIC ABOUT ECONOMIC SITUATION
The Consumer Confidence Indicator (CCI) rose over three points in March from -3.2 to 0.0. Despite this rise, it remains over five points below the historic average. Consumer confidence in personal finances has become more positive and expectations of personal finances one year ahead are more optimistic than in February. Meanwhile households have become less negative to the economic situation in Sweden and confidence in the Swedish economy one year ahead is less pessimistic.
For further information:
Roger Knudsen, Head of Economic Tendency Survey, +46-8 453 59 06, +46-70-491 36 04
Torbjörn Lindquist, Economic Tendency Survey, +46-8 453 59 52
Sarah Hegardt Grant, Head of Communications, +46-8 453 59 11, +46-70-267 80 41
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