Sweden: Economic Tendency, August 2009

The Economic Tendency Indicator, which measures business and consumer confidence in the economic situation, rose from 87.1 in July to 88.7 in August. All sectors of the economy except the manufacturing industry contributed to this rise. The confidence indicator for the retail trade showed the sharpest increase.

Business: SHARP RISE IN RETAIL TRADE The confidence indicator for the business sector continued its upward trend in August for the fifth consecutive month. It rose six points in August compared with the previous month, with all sectors except the manufacturing industry making a positive contribution. Despite rising for several months, the indicator still shows a much weaker than normal situation in the business sector. Employment has fallen further, but fewer firms than previously now forecast continued staff cuts. Financing opportunities in the business sector improved in August, with 31 per cent of firms now stating that it is more difficult or considerably more difficult than normal to finance business activities, which is the lowest figure since November 2008. Consumer: HOUSEHOLDS OPTIMISTIC ABOUT FUTURE SWEDISH ECONOMY Consumer confidence in the economic situation continued improving in August. The Consumer Confidence Indicator (CCI) rose from –3.7 last month to 3.1 and indicates that households are currently only somewhat more pessimistic than normal. Above all, they are considerably more optimistic about the development of the Swedish economy in the future, with over half of households expecting an improvement in the next 12 months.