Market News
The
Market Quotes Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.
More gloomy economic signals from the Swedish scene
Thursday, 08 March 2012
Negative economic signals about the Swedish economy continue to flow. But it is not as gloomy as some months ago.
The service sector has now shown worse than expected performance in
which production in the service sector is expected to fall during the
first quarter, compared with late last year. And because that sector
accounts for around half of the Swedish GDP, that might mean that the
Swedish economy could be heading for a recession, according to Lena
Hagman, chief economist at the trade and employers' organization Almega.
Also the financial officers in the Swedish bank, SEB and the consulting
firm, Deloitte survey show a pessimistic business period even if the
business climate has improved somewhat since November.
Both studies suggest lower employment. Lena Hagman predicts that
unemployment will rise this year. The Financial Officers warned that
the strong Swedish krona will hit exporters. Meanwhile, many companies'
financial position has weakened and it has become tougher for companies
to borrow.
Last Wednesday the Association Teknikföretagen, that deal with mostly
manufacturing and technical related export orientated companies
presented its forecast for the engineering industry and pointed that it
remained bleak, although there were positive signs somewhat from the
local market. The downturn there has at least not accelerated as one
would have thought.
By Scancomark.se Team
What do you think about this article and us? Please leave a comment!