Growing optimism in the service sector
The Economic Tendency Indicator fell 1.2 points from 99.3 in August to 98.1 in September. Only the indicator for the private service sector improved in September, gaining 4.9 points. The indicator for the building and civil engineering industry was unchanged, and the other indicators fell. The biggest decreases were in the manufacturing industry and the retail trade, which fell 6.5 and 3.9 points respectively, while consumer confidence dropped 0.8 points
Overall business confidence edges up further in September
The confidence indicator for the manufacturing industry fell 6.5 points in September and is now once more well below the historic average. The decrease was due primarily to developments in pharmaceuticals, machinery and “other manufacturing”. Overall, orders and output nevertheless increased slightly, while employment continued to decline. Employment is expected to fall further in the coming months, while output is forecast to rise somewhat.
The confidence indicator for the building and civil engineering industry was unchanged in September and remains slightly more than 8 points below the historic average. Both output and employment have continued to decline, and tender prices have fallen. More and more homebuilders are reporting problems with financing as the main obstacle to higher activity. Firms expect order stocks to increase somewhat in the coming months, while output is expected to be unchanged.
The confidence indicator for the retail trade dropped 3.9 points in September and is now once more a couple of points below the historic average. The indicators for the food trade and the specialist retail trade fell, while the indicator for the motor trade rose marginally. Expectations are consistent across the sector, with all sub-sectors anticipating appreciable sales growth in the coming months.
The confidence indicator for the private service sector gained 4.9 points in September and is now almost 5 points above the historic average. Demand has picked up and employment has been largely unchanged in recent months. Firms anticipate substantial growth in demand in the coming months, and employment is also expected to increase somewhat.
Consumers more upbeat about the Swedish economy
The Consumer Confidence Indicator dropped 0.8 points in September to 2 points below the historic average. The decrease was due to a more pessimistic view of personal finances, with the Micro Index falling more than 3 points. Consumers are more upbeat about the Swedish economy, however, with the Macro Index gaining almost 2 points.
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
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