The sentiment among consumers continues to improve

The increase in the consumer confidence indicator is largely explained by improved expectations among consumers regarding both their own economy over the coming twelve months and Sweden’s economy twelve months ahead. The questions that weigh most heavily on the indicator continue to be consumers’ views on major purchases at present, as well as the assessment of their financial situation now compared with twelve months ago. The indicator for women increased relatively strongly, while that for men declined somewhat.

In the business sector as a whole, expectations regarding sales prices over the next three months remain largely unchanged compared with August and are close to the historical average. However, developments differ across sectors. Price plans increased within trade and, to some extent, in construction, while they were dampened in manufacturing and the service sector. Thus, firms’ price plans are in line with the historical average in manufacturing and the service sector but above normal in construction and trade.

The confidence indicator for manufacturing rose and now points to a normal sentiment. Firms are less optimistic than usual in their production plans over a three-month horizon, which dampens the indicator. At the same time, firms report relatively small stocks of finished goods, which has a positive effect on the indicator.

The confidence indicator for construction decreased marginally and points to a weaker sentiment than normal. Firms’ expectations regarding building activity over the next three months have declined during the past half year, and in September construction firms expect activity to remain unchanged over the same horizon. More than six out of ten firms report that insufficient demand constitutes an obstacle to increased construction.

The confidence indicator for trade continued to rise and displays the strongest sentiment in the business sector. The confidence indicator for retail food trade declined, but nevertheless continues to show a considerably stronger sentiment than normal. Among firms in motor vehicle trade, wholesale trade, and non-food retail trade, the indicator is around its historical average.

The confidence indicator for the service sector decreased marginally but still points to a normal sentiment. At the same time, dissatisfaction with the volume of assignments remains persistent. For more than two years, firms have reported greater dissatisfaction with the volume of assignments than the historical average.