”Despite continued historically high levels, the latest development indicates a possible change in direction towards some relief”, writes UC in a press release.
Headwind for hotels and restaurants
Within the construction industry and wholesale trade, the decrease in the number of bankruptcies was 24 and 18 percent in June, according to UC. But when it comes to hotels and restaurants as well as retail, there was an increase of 1 and 5 percent, respectively.
A low-growth economy with lower growth than expected, high unemployment, and a cautious attitude towards investments characterizes the Swedish economy right now, according to Amanda Aldestam, analyst at UC.
And the cautious optimism that has been noticeable has faded, according to the Swedish Central Bank's business survey and the National Institute of Economic Research's barometer from June.
Import duties affect
The development in retail will be particularly interesting to monitor going forward, according to Aldestam. She notes that both the Swedish Trade Stilindex from May and the National Institute of Economic Research's latest barometer, together with UC's bankruptcy figures, signal a strained situation.
"The Swedish Central Bank's latest cut in the interest rate can, on the other hand, promote households' purchasing power going forward”, says Aldestam in a comment in the press release.
Trade policy tensions and import duties that affect both demand and planning conditions play a crucial role. How the tariff negotiations between the EU and the US - during the so-called tariff pause that runs until July 9 - go can be crucial, according to Aldestam.
