Improved profitability expected for Swedish companies next year.

Financial officers at some of Sweden’s largest companies have became considerable more upbeat towards the current macro-economic environment, according to SEB's quarterly Financial Officers' survey.

"Our survey clearly shows an increasing number of financial officers expecting volume increases to contribute to profitability next year”, said Ebba Lindahl, head of Credit Research at SEB. “Even if cutting costs remains important this finding could indicate that most steps taken to reduce costs have now been completed".

Many respondents said their companies are mid way through the crisis, indicating the dull times are far from over and that it may still take some time before companies fully recover despite the turnaround in the global economy.

Almost half of the respondents expect to raise prices during the next six months.

SEB's Financial Officers' Index, addressed to around 70 of Sweden's largest companies, stood at 59 in November, the highest value since May 2008, compared with 54 in August.

On Tuesday the same bank said that governments and central banks seem to be drawing a sigh of relief as world economy is recovering and unemployment is expected to peak earlier than previously forecasted.

“The world is now catching its breath before the second lap of a tough long-distance race”, the bank said in its Nordic outlook.