Economic Tendency Survey, October 2011

The Economic Tendency Indicator fell a further 2.3 points in October and has thus declined nearly 18 points over the past five months. It is considerably below the historic average, indicating weaker than normal growth in the Swedish economy at present. All sectors of the economy and households contributed to the decline in the Economic Tendency Indicator this month.

Business: Increasing dissatisfaction with demand situation

The confidence indicator for the total business sector fell a further couple of points in October and is slightly below the historic average. However, there are significant differences between the various sectors. The situation is weakest in the retail trade where the indicator is considerably below the average, while the indicator for the construction industry remains above the historic average.

Consumer: Increasingly pessimistic expectations of personal finances and Swedish economy

Households remain gloomy about the economic situation in October. The Consumer Confidence Indicator (CCI) fell for the fifth consecutive month from -5.8 last month to -7.5. Above all, households are pessimistic about the development of the Swedish economy and unemployment in the next 12 months. Inflation expectations one year ahead rose to 3.1 per cent in October, compared with 2.3 per cent the previous month.

For further information:

Roger Knudsen, Head of Economic Tendency Survey, +46-8 453 59 06, +46-70-491 36 04

Maria Billstam, Assignments, methods and samples, +46-8 453 59 04

Sarah Hegardt Grant, Head fo Communications, +46-8 453 59 11, +46-70-267 80 41