SEB's Financial Officers Survey - Financial off...

Swedish and Norwegian financial officers remain optimistic regarding future
developments. Business conditions improved strongly last fall and are still
considered favourable, a view corroborated by robust financial positions among
companies and continued willingness of banks to extend credit to companies. Our
respondents' positive view is also supported by businesses' greater preparedness
to use potential liquidity surpluses for investment rather than debt reduction.
We also note that while declining demand remains an issue, it is of less concern
than previously. The slight decline in index values reported mainly reflects
worries regarding the development of credit spreads and equity markets, probably
due to economic instability in several European countries and their respective
banking systems.

SEB's Financial Officers' survey, addressed to over 100 of the largest companies
in Sweden and Norway, shows that respondents have remained optimistic over the
winter. SEB's Financial Officers' Index for Sweden published today stands at
65, down from 66 in November while the corresponding index for Norway stands at
64, down from 65 in November.

Raw material costs and labour shortage growing concerns

"While financial officers in both Sweden and Norway continue to rank demand as
their greatest concern for the future, Swedish respondents are much more worried
by rising raw material costs. This is not an issue in Norway, where the lack of
a qualified workforce and high labour costs are more problematic. Indeed, some
65 percent of Norwegian financial officers believe they will employ more staff
in Norway in the next six months while only 22 percent of their Swedish
counterparts have the same expectation", say Ebba Lindahl, Head of Credit
Research at SEB and credit analyst Henrik Blymke.

More significant price increases imminent in Sweden

"In Norway fewer financial officers (41 percent) now expect their companies to
raise prices than in November (63 percent). This is in sharp contrast to Sweden,
where an increasing share of respondents (71 percent in February compared to 62
percent in November) expect to raise prices during the next six months. A
similar percentage of Swedish financial officers (68 percent) believe they will
be able to compensate for higher raw material costs by increasing prices", says
Lindahl.


This is the twentieth publication of SEB's Financial Officers' Index Sweden and
the fourth publication of SEB's Financial Officers' Index Norway. The purpose of
this unique survey 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 and Norwegian) is available at
www.sebgroup.com\press.

 For further information, please contact   Press contact
 Ebba Lindahl, Head of Credit Research     Elisabeth Lennhede
 [phone]                          [phone]
 [e-mail]                       [e-mail]

 For further information, please contact
 Henrik Blymke, Credit Research
 [phone]
 [e-mail]





Press release (PDF): 


http://hugin.info/1208/R/1491494/427138.pdf

Ebba Lindahl: 


http://hugin.info/1208/R/1491494/427143.jpg




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Source: SEB via Thomson Reuters ONE

[HUG#1491494]