The Swedish Konjunkturinstitutet (the National Institute of Economic Research) reported that the sentiment among Swedish construction companies improved in July and is now to be regarded as normal. The confidence indicator for construction activity rose again in July, to 99,4, after dipping to 97,6 in June. A reading of 100 is defined as a normal sentiment level.
Despite the increase, construction remains the only part of the business sector with a confidence indicator below 100, Konjunkturinstitutet reported. The institute attributed the rise mainly to more optimistic employment plans among firms, while views on order books stayed unchanged and weaker than normal.
Companies also reported a stronger development of order books over the past few months and are, to a much greater extent than normal, optimistic about how order books will develop going forward. Firms further indicated an unusually strong degree of optimism about the construction market's development on a one-year horizon, Konjunkturinstitutet said.