Press release from Statistics Sweden

2010-01-08 9:30 AM Nr 2010:4


Activity Index, November 2009:

Continued downturn in economic activity

Activity in the Swedish economy dropped in November, according to estimated trends in the Activity Index. The trend decreased 0.2 percent compared to October, corresponding to an annual rate of a negative 2.7 percent.

The decrease of the Activity Index in November can mainly be explained by the decreasing trend in exports of goods, industrial production and an increase in imports. The turnover in retail trade gave a small positive contribution to the Activity Index while hours worked by employees in government agencies only had a small impact on the development. See the graph below.

The change in the trend of the Activity Index for the period November 2008 – November 2009 was a negative 4.3 percent. The seasonally adjusted index decreased by 0.1 percent in November compared to October.

See below for more information regarding deviations between the Activity Index and GDP.

Revision of seasonal adjustment

Every year a revision of the seasonal adjustment in the Activity Index is made. In this review the seasonal adjustment model is changed if necessary. In conjunction with the publication of the Activity Index in October, a new model for seasonal adjustment has been implemented. The model increases the variability of the seasonally adjusted series but gives a better description of the business cycle.


Percentage change from previous month, annual rate. Trend
Seasonally adjusted index and trend estimates
    Index 2005=100 Percentage change from previous month Percentage change from previous month, annual rate, trend.
Trend
October
101.36 -0.25 -3.01
 
November
101.13 -0.23 -2.71
Seasonally adjusted
October
100.63 0.54  
 
November
100.51 -0.12  
Activity index 2005=100. Seasonally adjusted
Contribution from indicators to the change in the trend, annual rate.

Definitions and explanations

The Activity Index (AI) measures activity in the economy. It is a regression model with the following explanatory variables: Industrial production index, Hours worked by employees in government agencies, Turnover in retail trade, and Exports and imports of goods.

The Activity Index exists in three variations: the original series, the seasonally adjusted series and an estimation of the trend. The trend reduces the effect of temporary disturbances in the seasonally adjusted index.

The Activity Index, original series, is calibrated to the non-adjusted GDP (2005=100), so that GDP and the Activity Index are equal for all quarters. The average value for the Activity Index original series for the months in the quarter is equal to GDP for the quarter, calculated as an index (2005=100).

Revisions of the Activity Index

 When the Activity Index for a new month is published, the index for previous months is also normally revised. This is mainly due to new/revised indata to the Activity Index and how these data interact in the models used. New/revised GDP information also affects the series backwards in time. 

Deviation between GDP and Activity Index (Bias)

When GDP for the current quarter is not known, the deviation (bias) between the Activity Index and the most recently published GDP is extrapolated. For example, if a non-adjusted Activity Index is 2 index points higher than the latest GDP (calculated as an index) the Activity Index is reduced by 2 index points.

Certain GDP components are not measured in the Activity Index, such as investments and export/import of services. If these components develop differently than GDP in general, the deviation between the Activity Index and GDP will increase.

Data in current prices in the Activity Index is used for export and import. Significant price changes then result in deviations between the Activity Index and GDP in constant prices.

Deviations (bias) between the non-adjusted Activity Index and GDP is reported in a separate series to be found among Requested tables and graphs. See "Data and graphs for printing out" (xls).

Next publishing will be

on at 2010-02-10 09.30.

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Responsible authority

Statistics Sweden, National Accounts
Box 24300
104 51 Stockholm
Fax +46 8 506 942 96


Enquiries

Jörgen Bromé
Phone +46 8 506 945 33
E-mail nrinfo@scb.se





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