Since last May, Swedish financial officers regard the business climate as less favourable.

– While and increasing number of financial officers regard the business climate as less favourable and report that demand is weakening, a majority retain a positive view on the overall climate, says Ebba Lindahl, credit strategist at SEB and co-author of the report with Monica Ochman.

At the same time, all participating financial officers were confident that profits will rise in 2008 driven mainly by price hikes and volume increases.

As a result of the global credit crisis, banks are now substantially less willing to lend.

– The declining willingness to lend could eventually lead to reduced investments by companies. That might in turn weigh on economic growth in Sweden, says Monica Ochman.

The survey also shows respondents less concerned by higher raw material costs. This could explain why expected price increases on companies’ own products have not changed significantly since the last survey. 

Emelie Ring