The decreased bankruptcy level within retail coincides with increased in-store trade. Statistics Sweden figures for June show that the sales volume in retail increased by 1 percent compared to the previous month.
Durable goods retail accounted for the largest increase with a rise of 1.4 percent, while grocery retail increased by 0.4 percent. Compared to June last year, retail sales have grown by 6.6 percent.
Tough Situation for Wholesalers and the Hospitality Industry
In total, the number of company bankruptcies in the business sector increased by 4 percent during July, according to statistics from UC. The situation is most difficult for wholesalers and suppliers in wholesale trade, where bankruptcies increased by 71 percent.
At the same time, there are several signs that the Swedish economy is growing. Gross domestic product increased by 1.4 percent during the second quarter, which is 2.8 percent higher than the same period last year.
Confidence is also increasing among Swedish companies and households, especially within trade and industry. In addition, 7 percent more new companies were started during July.
July's statistics provide a mixed picture of bankruptcy development. The decrease in retail is positive and is in line with the stronger signals we are now seeing in the economy, but the increase in wholesale trade shows at the same time that the recovery is still uneven. Although gross domestic product, sales and sentiment are pointing in the right direction, bankruptcy levels remain high in several parts of the business sector. As we look towards the autumn, we therefore see reasons for cautious optimism, but developments will continue to depend on household consumption and companies' cost situation, says Amanda Aldestam, analyst at UC.