SEB Financial Officers' Index: Increasing optim...

Optimism continues to increase among Swedish financial officers. Swedish
companies have been largely unaffected by recent sovereign unrest and financial
market turbulence. In fact, according to Swedish CFOs, the business climate has
improved significantly since our survey in February. Concerns regarding falling
demand are decreasing and companies believe Asia will drive growth. More
companies expect to increase staffing and profit expectations for 2010 remain
high.

SEB's  Financial Officers'  survey, addressed  to around  70 of Sweden's largest
companies, shows that respondents are becoming increasingly positive towards the
current  situation.  SEB's  Financial  Officers'  Index  for May published today
stands at 62, up from 60 in February.

The  survey  now  suggests  respondents  are  more  positive towards the current
business climate.

"A majority of financial officers expect volume increases to support higher
profitability this year while cost cutting is declining in importance. Indeed,
some 61 per cent of respondents forecast improved profitability in 2010 compared
to 2009", says Ebba Lindahl, head of Credit Research at SEB and co-author of the
report with Disa Hammar.

Improved employment outlook

"Following extensive lay-offs last year many companies now expect to employ
staff. One third of respondents believe they will recruit more personnel in
Sweden, a significant improvement since February. Prospects for employment
abroad are even more positive with 40 per cent of respondents expecting to
enlarge payrolls", says Hammar.

Higher raw material costs

"Financial  officers are  increasingly concerned  about the  rising cost  of raw
materials.  While none  of the  financial officers  expressed concerns regarding
this   in  February,  14 per  cent  now  regard  higher  prices  as  potentially
problematic.  At the same time, companies are less worried about falling demand,
even  if it  still remains  the greatest  perceived threat,  with 58 per cent of
respondents  declaring it to be their biggest  concern compared to 89 per cent a
year ago", says Lindahl.

This is the seventeenth 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.com\press <

http://www.sebgroup.com/press>.

____________________________________________________________________________

For further information, please contact:
Ebba Lindahl, Trading Strategy, SEB, tel. [phone]
Elisabeth Lennhede, Press Officer, tel. +46
70 763 99 [e-mail] <mailto:[e-mail]>



[HUG#1416997]





    Press Release (PDF): 

http://hugin.info/1208/R/1416997/367517.pdf