SEB's Financial Officers' Index - Continued optimism despite increasing uncertainty
(Thomson Reuters ONE) -
Optimism remains strong among Swedish financial officers and has only decreased
marginally since our previous survey, likely reflecting a slower than
anticipated recovery in the global economy. With most officers nevertheless
believing higher volumes will contribute to improved profitability during the
current year, earnings expectations remain high. While respondents appear more
concerned this year by higher raw material costs, an increasing number of
companies expect to raise prices.
SEB's Financial Officers' survey, addressed to around 70 of Sweden's largest
companies, shows respondents only slightly less optimistic. SEB's Financial
Officers' Index for August published today stands at 61, down from 62 in May.
The Financial Officers' survey suggests respondents are now marginally more
cautious concerning current business conditions, but has also increased concern
for raw material costs and see upcoming price hikes.
"Uncertainty regarding the business climate has increased with fewer financial
officers regarding it as favourable. At the same time most respondents expect
volume increases to support higher profitability this year. Cost cutting
continues to be regarded as important though still much less so than in 2009
when a record share of respondents prioritized this. Almost a third of
respondents expect higher profits this year compared to 2009", says Ebba
Lindahl, head of Credit Research at SEB and co-author of the report with Disa
Hammar.
"Worries regarding demand still dominate responses when financial officers are
asked what factors can hurt profitability this year. However, for the second
consecutive quarter, respondents are increasingly concerned by rising raw
material costs, with 24 percent ranking it their main concern, compared to 14
percent in May and 0 percent in February", says Hammar.
"A growing share of financial officers (68 percent in August compared to 57
percent in May) believe their own company will raise prices. This could be an
indication that they expect to be able to pass on increasing raw material costs
to clients", says Hammar.
This is the eighteenth publication of SEB's Financial Officers' Index, a unique
quarterly survey whose purpose is to reflect changes of sentiment in the
financial environment and facilitate the understanding of economic and financial
trends. The survey comprises a total of 15 questions covering areas such as
business climate, strategic investments, employment, views on currencies and
interest rates, financial strength, and lending attitudes amongst financial
institutions. The full report (in Swedish) is available at
www.sebgroup.compress.
For further information, please contact Press contact
Elisabeth Lennhede
Ebba Lindahl, Head of Credit Research +46 70 763 99 16
+46 8 506 232 08 elisabeth.lennhede(at)seb.se
ebba.lindahl(at)seb.se
[HUG#1441722]
Press release:
http://hugin.info/1208/R/1441722/386038.pdf
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Source: SEB via Thomson Reuters ONE
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Datum: 01.09.2010 - 07:30 Uhr
Sprache: Deutsch
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