The measurement shows that expectations for the next three months have strengthened across the board:
- Grocery Trade: Accounted for the primary increase during the month. The future indicator rose by 5.4 units, reaching an index of 104.1. Traders in the segment have strengthened expectations for sales, profitability and the number of employees.
- Durable Goods Trade: The future indicator increased by 1.9 units, landing at 96.5. The increase is primarily driven by higher expectations for future sales.
- Wholesale Trade: An increase of 1.9 units to an index of 95.1 was also noted here. As with the durable goods trade, it is a more positive view of sales that is behind the increase.
Strengthened Purchasing Power and Reduced Uncertainty
Sofia Larsen, CEO of Svensk Handel, points out that the increase is broad and based on changed economic conditions for consumers.
After a long period of caution, we are now seeing more trading companies starting to look brighter on the future again. When confidence in the future strengthens throughout trade at the same time, it is a sign that companies see better conditions ahead of them than they have done for a long time.
In addition to consumers' strengthened economy, macroeconomic factors are also mentioned as contributing causes to companies' optimism.
We are seeing signs that household purchasing power is gradually strengthening, which is crucial for trade. The reduced VAT on food can also help to strengthen household finances and give the grocery trade better conditions ahead. At the same time, uncertainty surrounding global developments appears to have decreased somewhat, which can contribute to lower cost pressure at several levels.
Despite the strengthened confidence in the future, the industry organization points out that the situation for companies is not yet fully stabilized.
However, the recovery is still fragile and it will take time before the improved confidence in the future is fully reflected in consumption and in companies' results.