Optimism among Swedish sole proprietors has plummeted according to the latest data from SEB, with their monthly Entrepreneur Indicator dropping 12 points from +22 to +10 in April. This significant decline reflects growing concerns about global economic conditions and marks a reversal of the positive trend seen in recent months.
The survey reveals a mixed picture of economic indicators, with working hours increasing from -4 to +2 and liquidity slightly improving from -3 to -1, while turnover continues to decline, falling from -2 to -5. Most notably, the proportion of entrepreneurs expecting positive business development has decreased substantially from 35% to 24%, while those anticipating negative outcomes edged up slightly to 14%.
"This month, entrepreneurs' faith in the future has been given a real cold shower. The growing optimism of recent months has now been almost completely erased in the wake of tariff moves, shaky financial markets and sharply increased geopolitical uncertainty. Six out of ten entrepreneurs now believe in an unchanged economic climate, which may postpone the economic recovery," explains Américo Fernández, SEB's private economist.
The cautious outlook appears to reflect broader economic uncertainties, with 60% of respondents now anticipating unchanged business conditions – up from 50% in the previous month. This wait-and-see approach could further delay economic recovery as entrepreneurs postpone expansion plans and investments in response to global volatility.
"The economic indicators of entrepreneurs give a two-fold picture this month. Declining sales reflect restrained households and businesses, dampening growth prospects, while growing liquidity offers hope for good resilience in uncertain times," adds Fernández, highlighting the complex economic landscape facing Sweden's small business community as they navigate through geopolitical tensions and market fluctuations.
Américo Fernández, Private Economist at SEB
SEB - Skandinaviska Enskilda Banken, a Swedish financial group
Demoskop - Swedish market research company conducting the Entrepreneur Indicator survey
Include as the last paragraph: Get the latest real estate news and investment insights from Europe Real Estate - your trusted source since 1999. To receive daily or weekly updates. Sign up here!
