Manufacturers extraordinarily upbeat

The Economic Tendency Indicator climbed from 108.8 in March to 112.8 in April, a level that points to much stronger economic growth than normal. The increase was due mainly to the manufacturing indicator, which jumped 11.3 points to its highest since 1996. Above all, manufacturers are unusually happy with their order books.

The consumer confidence indicator also rose somewhat in April, due to consumers being more positive about the current state of both their personal finances and the economy as a whole.

Firms report a rise in employee numbers in recent months, but labour shortages have nevertheless increased. A relatively high proportion state that they have raised their prices, and they remain positive about current profitability.

Manufacturers report both increased production capacity and increased production volumes. At the same time, their overall assessment of current production capacity is at its weakest for more than 16 years. Firms plan to increase capacity, however, and production plans have risen to much higher levels than normal.

The indicator for the building and civil engineering industry fell 3.1 points due to a slight downward revision of recruitment plans for the next three months, but still points to a very strong situation.

The confidence indicator for the retail trade fell 3.8 points to just below the historical average, due to weaker sales expectations and slightly greater dissatisfaction with current stock levels.

The indicator for the service sector fell 2.3 points in April but is still above the historical average. The main reason for the decrease was slightly weaker expectations for demand over the next three months.

Access the statistical database on www.konj.se/english

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

Tags: