The Riksbank’s Business Survey: “Things that were moving in the right direction have fizzled out”

Manufacturing industry: “The economy is getting worse”

Industrial activity is weak and has deteriorated during the spring. The uncertainty is making customers hold off on purchases and investments, which is making manufacturing companies particularly negative about the development of the economy. Construction companies’ faith in the future has also been dampened by the prevailing uncertainty. They point out that it will take longer than previously thought for demand in the housing market to pick up. But new orders remain strong in public building construction, facilities and infrastructure.

“Customers have regained some self-confidence”

In retail trade, companies state that the economic situation is generally satisfactory and several have noticed that sales volumes have increased during the spring. But they are concerned that the increased uncertainty could dampen demand. Some argue that households have already become cautious, while others see it as a risk that has not yet materialised. The restaurant industry is one of those that have already seen effects on sales.

“We need to get prices up a few per cent and hope our competitors feel the same way”

Companies selling to households are planning to increase their prices, above all due to increased purchasing costs. A stronger krona is expected to partly offset higher purchasing costs but the effects are being delayed due to seasonal purchases and currency hedging. Among business-to-business sellers, fewer than before are planning to increase prices over the next year. In particular, weaker demand will make it more difficult to raise them.

The import tariffs lead to “more hesitation, which is cooling off demand”

The majority of companies state that they have been affected by the import tariffs introduced, most of them to a small extent. However, the different announcements on tariffs are creating an unpredictability that is making customers more cautious and companies’ planning more difficult. In the long run, many companies also see a risk that the trade conflict will lead to subdued global demand.