Where is the recession?

In any case, it is not seen with the industrial giants and certainly not with the banks.

- These are historically high profits and the order books are full, says Danske Bank's chief strategist Maria Landeborn about the quarterly reports so far.

Skyrocketing energy prices, interest rates that are beeping away and households that are beginning to dig under increasingly expensive bills - but in the industry it is still full speed ahead.

Works great for the banks

In the past week, several of the stock exchange's major companies, Sandvik, Atlas Copco, Volvo, Stora Enso and banking giants such as Handelsbanken and Nordea to name a few, have pumped out quarterly figures that show records on several fronts, albeit inflated by exchange rate gains and increased prices.

- So far, things are still going well for the companies.

There was a concern before the quarterly reports.

But it's going strong for the industry and great for the banks, says Maria Landeborn.

Because while the economy is clearly pointing downwards, many companies are still doing well and the banks are directly benefiting from the higher interest rates, according to Landeborn.

A higher interest rate means that the banks can increase their interest margins and thus earn more money from their lending and deposits.

Real estate companies are having a tough time

- Broadly speaking, the reports are better than expected, above all in industry, says Lars Söderfjell, Head of Equity at the Bank of Åland.

"After 20 large companies submitted a report, corresponding to approximately 30 percent of the market value, it can be stated that this quarter will probably also provide a marked increase in profits.

The combined profit for all companies has so far increased by 16 percent.

You can rub your eyes," writes independent equity analyst Peter Malmqvist in an analysis.



At the same time, there are industries that are having a tough time.

Real estate companies are being pressured by rising interest rates and many companies that target consumers have noticed changes in purchasing behavior as many households have less in their wallets.



And many analysts now expect a slowdown.

The question is whether there will be a deeper recession or just a slowdown.