Swedish Exports- temperature on the rise
Today Business Sweden's new Chief Economist Lena Sellgren presented the Export Managers' Index (EMI) for Q2 2016.
EMI continued to increase during the second quarter, reaching 58,8 from 56,9 in Q1 2016.
This is the highest recorded result since the third quarter of 2014.
EMI forecast (evaluating the companies' expectations on the future) improved with 6.5 units to 65. For the third consecutive quarter the EMI forecast increased, providing the highest result since the second quarter in 2011. Nevertheless, the EMI present (evaluating the companies' view on the present situation) fell with 2,7 units to 52,6.
Large companies predominantly accounted for the recorded rise in EMI. The major change compared with the previous quarter is that small and medium sized companies (SME) are more positive in their current assessment. One exception is the outcome of export order backlogs, which continued to fall for the third consecutive quarter.
- In general, Swedish export companies have a very favourable view in regards to export sales in the next three months. This is an indication of continuous positive development for Swedish exports. We notice that large companies' optimism is on the rise, but also among small and medium sized companies, who are demonstrating increased confidence, says Lena Sellgren Chief Economist at Business Sweden.
More companies expect increased market demand. The demand derives mainly from Western Europe but also from North America, a region with particular growth expectations in the second quarter of 2016. Additionally, expectations on the MENA region rose sharply, in comparison with the last two surveys.
Companies' expectations on short-term (3 months ahead) export sales as well as profitability improved significantly in the second quarter. In addition, time of delivery also increase, mainly for larger companies. This sends a positive signal, indicating more efficient resource utilization.
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Business Sweden's Export Managers' Index (EMI) is a quarterly index measuring the temperature of the export industry.