Economic Tendency Survey May 2021

The Economic Tendency Indicator hits record high

The Economic Tendency Indicator climbed further in May from 113.5 to 119.3, the highest in its 25-year history. This strong situation is largely down to the high-flying manufacturing industry. The consumer indicator rose furthest in May, and only the retail indicator lost ground.

The confidence indicator for the manufacturing industry climbed 5.3 points to 126.0, its highest ever level. The increase in May was due to more optimistic expectations for production volumes and a more positive view of current order books.

The confidence indicator for the building and civil engineering industry gained 6.6 points to 107.1, driven by firms’ upbeat employment plans and more favourable take on their order books.

The confidence indicator for the retail trade fell 4.0 points but still points to a much stronger situation than normal. The decrease was mainly a result of weaker expectations for sales over the next three months.

The confidence indicator for the service sector rose by 3.5 points and continues to show a stronger situation than normal. The improvement was chiefly a result of firms being more positive about their business situation and stronger demand.

The consumer confidence indicator jumped almost 9 points to 112.3, a level that reflects a very strong situation and was last seen back in 2010. All questions included in the indicator contributed to the rise, in particular consumers’ increasingly positive view of how their personal finances have developed over the past year.