The Riksbank's company interviews: Slow recovery

Date 01/02/2010

Economic activity has continued to improve but is developing more quickly in some sectors than others. This is the picture that emerges from the company interviews that the Riksbank conducted in December.

 

Companies in the retail sector are in general satisfied with the economic situation while companies in the manufacturing industry express their disappointment that international demand has not yet picked up. The manufacturing companies also say that it will be a long time before they need to make new investments or employ new personnel.

 

Expectations regarding this year's round of collective bargaining also differ fairly widely from sector to sector, with expectations concerning wage increases over the next few years being lowest in the manufacturing industry.

 

In general, the companies expect price increases to be low in the period ahead. This is partly because they have ample spare capacity but also because they believe that competition is strong and demand weak.

 

Since 2007, the Riksbank conducts interviews with approximately 60 companies in the construction, retail, manufacturing and service sectors ahead of every Monetary Policy Report.