Cutbacks next!

Swedens finance directors seems to think that the economy is even worse than in September. Most of them seem to think the only way to cut cost and keep profits up are through employment cutbacks, according to SEB finance director index.

SEB's directors questionaire which is answered by Swedens 50 largest stock listed companies, shoed that November was a record low on market confidence. One question asked was which is the best solution to increase the companies profitability and 60% answered to decrease the employment force.

The previous times the answer would have been increase in volume and price increase to better profitablility, but now they only talk about costs. This is a trend which has not been seen before and this showes that cutbacks will probably continue, accroding to analysts at SEB.

The investigation showed that the reason for the anxiety by the finance directors is the recession. It was the recession signs rather that the financial signs like the banks willingness to lend and the companies financial position that gave the directors its gloomy outlook.

The investigation showed one positive improvement. The future positive outlook for the credit market. The directors believed that because of the recent huge deteriation of the credit market it could only be a small matter of time before it would start to go up again.