Swedish companies see economy remaining weak, survey shows

Credit: REUTERS/Ints Kalnins

Adds production figures, background

STOCKHOLM, March 8 (Reuters) - Economic activity is weak and Swedish businesses see little improvement in the short term, a regular survey of companies by the central bank showed on Friday.

Gloom about the economy in the survey chimes with production data for January which showed a weak start to the year.

Private production was down 1.6% compared to the same month in 2023 and fell 0.6% from December. Production in the construction sector showed the biggest decline on an annual basis, though it rose compared to December.

House builders have been badly hit by rising interest rates and falling demand.

In a positive development for inflation, however, consumer-related companies believe they will need to adjust prices less frequently than they have been doing recently.

Companies which sell to other businesses, however, are planning to continue to raise prices, the survey showed.

The central bank has been worried that companies have been passing on more of their own cost increases to consumers than usual over the last couple of years, which has an effect on inflation.

However, it remains wary of setbacks, fretting about a weak crown, company pricing policies and the geopolitical situation. EURSEK=

(Reporting by Simon Johnson, editing by Terje Solsvik)

((simon.c.johnson@thomsonreuters.com; +46 70 721 1045; Reuters Messaging: simon.c.johnson.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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