Economic Tendency Indicator up for a third month
The Economic Tendency Indicator climbed for a third successive month from 104.7 in August to 106.8 in September and continues to indicate a stronger situation than normal in the economy. The manufacturing and construction indicators made a positive contribution, while the retail and services indicators edged down, but all signal a stronger or much stronger situation than normal. The consumer indicator lost some of the ground gained in August and is now back just below the historical average.
Firms have optimistic employment plans
The confidence indicator for the manufacturing industry climbed 4.8 points in September to 110.1, which indicates a much stronger situation than normal. The rise was due mainly to a more positive view of stocks of finished goods, while firms’ assessment of their order books was largely unchanged, and their production plans over the next three months were revised down slightly.
The confidence indicator for the building and civil engineering industry also suggests a much stronger situation than normal after climbing 4.2 points from 106.7 in August to 110.9 in September. Both questions contributed to the rise: firms were happier with their order books, and expectations for employment over the next three months improved substantially.
The confidence indicator for the retail trade dipped slightly in September but continues to show a much stronger situation than normal. The decrease was due to firms being slightly more unhappy with their stocks of goods, while historical sales were reported to have grown at around the same rate, and expectations for sales over the next three months were as optimistic as before.
The confidence indicator for the private service sector fell marginally from 104.5 in August to 104.3 in September and continues to point to a stronger situation than normal. Only one of the questions made a negative contribution: demand was reported to have grown slightly less strongly than in August, although the proportion of firms reporting increased demand remains relatively high. Expectations for demand over the next three months were as optimistic as before, and the third component – firms’ view of how their operations have developed in recent months – improved somewhat.
Wide gap between assessment of personal finances and swedish economy
The consumer confidence indicator fell from 99.8 in August to 98.7 in September, a level that suggests somewhat greater pessimism than normal. The decrease was due mainly to a more negative view of the Swedish economy, both now and over the next 12 months. On the other hand, consumers’ view of their personal finances improved and remains much more positive than normal when it comes to the current situation, expectations for their personal finances over the next 12 months were largely unchanged and only just below the historical average, and their assessment of whether now is a good time to make major purchases was as positive as before.
For further information:
Maria Billstam, Head of Economic Tendency Surveys +46 8 453 59 04
Sarah Hegardt Grant, Head of Communications +46 8 453 59 11