The Gothenburg region has been experiencing an economic boom since the autumn of 2016. But the latest economic tendency survey from Region Västra Götaland and Statistics Sweden shows that this boom has now slowed and we are instead seeing a stronger than normal business cycle.
The economic tendency indicator for autumn 2018 came in at 34 for the Gothenburg region, where over 40 indicates a boom. This result was lower than the expectations of last spring - when the autumn forecast was 52. The autumn 2018 result was 12 units less than the spring 2018 result.
The survey does, however, show that companies have a slightly more optimistic outlook for spring 2019, when the economy is once again expected to approach a boom.
Economic boom for many, but slowing down
The economic situation in almost all sectors has slowed since the spring survey. The most favourable position is enjoyed by companies in IT services, with an economic tendency indicator of 65.
Despite the slowdown, companies in the automotive, construction, engineering and electronics industries, as well as business services and wholesale trade, are still experiencing a boom, albeit significantly lessened.
Even though many industries have tapered off, most companies still find that both their global and domestic markets have increased, their backlogs of orders are moderately sized and profitability is good.
In the forecast for spring 2019, IT services, the electronics industry, wholesale trade and the automotive industry expect to see a strengthening of the current economic boom. On the other hand, companies in engineering, construction and durable goods expect the situation to further weaken.