Economic Tendency Survey August 2021

Economic Tendency Indicator down marginally from record high

The Economic Tendency Indicator fell slightly from 121.9 to 121.1 in August but remains very high by historical standards, pointing to much stronger sentiment in the economy than normal. The decrease was a result of weaker signals from retail and services.

The confidence indicator for the manufacturing industry edged up by 0.6 points to 129.2. Firms’ production plans were even more optimistic, while their view of both their stocks and their order books held back the increase.

The confidence indicator for the building and civil engineering industry also gained 0.6 points, with firms’ assessment of their order books improving to its strongest since August 2018.

The confidence indicator for the retail trade fell 7.0 points but continues to show a much stronger situation than normal. All questions included in the indicator contributed to the decrease, but it was due mostly to less positive signals about recent months’ sales.

The confidence indicator for the service sector also fell but still points to strong sentiment. The decrease was a result of firms being less positive both about how their business has developed and about demand for their services.

The consumer confidence indicator climbed 2.4 points to 108.6, returning more or less to its level in June. The improvement was due above all to how consumers view the Swedish economy compared to a year ago and how they expect their personal finances to perform over the next 12 months.