Economic Tendency Survey November 2019

Consumers unusually pessimistic about Swedish economy

The Economic Tendency Indicator edged up from 94.0 in October to 94.7 in November but continues to show weaker sentiment than normal in the economy.

The confidence indicator for the manufacturing industry did not change appreciably in November and remains some way below the historical average. Producers of basic materials are the most pessimistic. Relatively subdued production plans for the coming months are the main reason why the overall indicator is below normal.

The confidence indicator for the building and civil engineering industry was also largely unchanged and continues to show slightly stronger sentiment than normal.

The confidence indicator for the retail trade gained 3.1 points on the back of more positive expectations for sales volumes in the next three months, especially among specialist retailers.

The confidence indicator for the service sector also rose slightly but remains below the historical average. The improvement was mostly due to somewhat stronger signals from firms about how their operations have developed in the past three months.

The consumer confidence indicator fell slightly in November and continues to show weaker sentiment than normal. The decrease was mainly down to consumers being somewhat less positive about how their personal finances have fared over the past year, but the low level of the indicator is still chiefly a result of unusually pessimistic expectations for the Swedish economy over the coming year.