Economic Tendency Survey December 2022

The Economic Tendency Indicator remains at a low level

The Economic Tendency Indicator fell marginally again in December to 84.7, reflecting much weaker sentiment than normal in the Swedish economy. There were limited movements in the business sector indicators, with the services indicator gaining 1.6 points and the retail indicator falling by the same amount. After rallying slightly in November, the consumer indicator dropped back again.

The confidence indicator for the manufacturing industry decreased marginally in December. The picture in the sector is mixed, however, with producers of durable goods reporting a much stronger situation than normal, and producers of intermediates and non-durable goods reporting a weaker situation than normal.

The confidence indicator for the building and civil engineering industry was unchanged. The two segments moved in different directions, however, with the civil engineering indicator gaining 2.4 points and the construction indicator falling 1.8 points.

The confidence indicator for the retail trade fell 1.6 points. Fewer firms reported insufficient stocks, and sales expectations were somewhat more negative.

The confidence indicator for the service sector climbed 1.6 points to 87.1. All questions included in the indicator contributed to this low level, but firms did not respond negatively to all questions in the survey. For example, they reported having recruited more staff than normal in recent months.

The consumer confidence indicator fell 3.3 points and is back close to October’s record low. The micro index summarising consumers’ view of their own finances fell 7.3 points to 43.6, while the macro index summarising their view of the Swedish economy edged up further to 78.0.