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Industry operating at full capacity

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10:19 CET+01:00
Even though industry is operating at full capacity with levels even higher than at the turn of the millennium, manufacturers are hesitating to invest. Many companies are concerned that Sweden's manufacturing sector might be planning to emigrate.

Recently, however, signs emerged that industrial investment might also be on the way back up in Sweden. Industrial investments in 2004 amounted to 51.7 billion kronor, and could increase to 57.5 billion kronor in 2005. Pulp and paper industry investments could rise by as much as 26% this year.

Pay expectations down

Consumers' pay expectations have fallen sharply in January and February and many people now expect their own income growth to slow down. "Unusual", is how Örjan Hultåker, the Skop poll's analyst, describes the result of the survey carried out between 20 January and 8 February.

Lower earnings forecasts in industry

Signs are emerging of lower earnings growth in industry after the numerous pleasant surprises in the recent wave of year-end reports. Many firms are lowering their forecasts after last year's record profits.

Sources: Dagens Nyheter, Svenska Dagbladet, Dagens Industri

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