Economic Tendency Survey April 2022

Strong sentiment despite global uncertainty

The Economic Tendency Indicator edged down in April from 110.3 to 109.5. The manufacturing and retail indicators lost ground, while the other sectors improved slightly. Despite the uncertainty in the economy, business confidence remains very strong.

The confidence indicator for the manufacturing industry fell 3.3 points but is still at an unusually high level. The decrease was due primarily to firms being less optimistic about production.

The confidence indicator for the building and civil engineering industry rose slightly and shows stronger sentiment than normal. The indicator for housebuilders climbed 1.7 points, while the indicator for civil engineers dropped 2.2 points.

The confidence indicator for the retail trade was more stable in April after recent months’ volatility, slipping half a point to 110.3. Only a few times since the financial crisis have firms’ employment plans been as optimistic.

The confidence indicator for the service sector edged up from 108.8 to 109.6 and continues to show stronger sentiment than normal. The increase was due mainly to firms reporting an improvement in their business situation.

The consumer confidence indicator climbed 1.6 points to 74.9 after falling sharply in March but still shows very weak sentiment. The Micro Index summing up how consumers view their personal finances gained 5.6 points, but the Macro Index measuring their view of the Swedish economy rose only 0.8 points.