Evidence that things are getting harder for the Swedish economy - transport companies groundingMonday, 11 July 2011
A direct sign that growth in the Swedish economy is slowing has been identified in the transportation sector. Activities in the sector slowed down in the past months according to latest data.
The latest transport indicators from the trade organization Transportgruppen shows that just over a quarter of the 250 companies included in the survey are less optimistic now than during the previous quarter.
One explanation is that it is summer which is a period when activities show down because many people have gone in holidays, according to Hanna Axelsson from the transport Union speaking to radio Sweden. Prices have to go up in the coming months to compensate for the slag according to the report.
“Sales will of course decrease, as it always does during the summer, we will raise prices substantially, to cover the fixed costs we have today.”
Summer time certainly is good business for those companies engaged in passenger transportation, but for others, particularly hauliers, the holiday period is weak. Transport Group poll shows that the companies in everything from taxis to the maritime believe they will earn less money during the next quarter than in the past.
But it cannot just be blame on the summer. Performances in the sector as well as the optimism curve have been dropping for more than a year now.
“It's a bit choppy than usual, not the same as before,” said Hanna Axelsson
The study is one in a series that shows that the growth rate in the Swedish economy is slowing down. As late as last Friday, one could tell that new orders to Swedish industry were stagnating.
As the transport business confidence falters, as explained by the trade association blamed on concern in the world economy such as the debt crisis in Greece and the U.S. economy which is not recovering as expected, there also more worried about foreign competition now than before, according to Maria Nygren, another authority in the transport sector.
“We all see that it is very much foreign lorries carrying goods in Sweden, and they do not have the same cost level as the Swedish fleet, as such one feels the effects of competition very clearly.”
By Scancomark.se Team