Economic Tendency Survey July 2023

Weaker sentiment in the manufacturing industry

The Economic Tendency Indicator fell 2.4 points in July from 89.9 to 87.5 and shows much weaker sentiment than normal in the Swedish economy. The manufacturing indicator fell furthest, but this remains the strongest sector.

The confidence indicator for the manufacturing industry dropped 4.8 points to 97.1. Expectations for production were behind the decrease, and negative expectations also explain the negative sentiment in the sector.

The confidence indicator for the building and civil engineering industry fell 0.6 points to 95.9. Employment plans were revised down further and are the main reason why the indicator is below 100.0.

The confidence indicator for the retail trade climbed for a third successive month, rising 1.5 points to 88.7, but this remains the most negative part of the business sector. The indicator for food retailers gained 2.9 points to 100.0.

The confidence indicator for the service sector edged down to 91.5. Although sentiment is weaker than normal, firms generally reported an increase in employment over the past three months, and their employment plans for the next three months are more optimistic than normal. At the same time, almost three out of ten firms reported labour shortages.

The consumer confidence indicator rose 0.5 points to 72.3. The share of consumers planning to purchase a new home or renovate an existing one increased in July but is still much lower than normal. When it comes to buying a car in the next 12 months, expectations were unchanged, with fewer consumers than normal planning to buy or change their car.