The confidence indicator for Sweden’s total economy (ESI) dropped to 102.2 in May, as compared with consensus expectations of 105.5 and April’s figure of 104. The confidence indicator has dropped for the fourth consecutive month from its peak in January.
The drop was broad-based in all underlying sectors. Consumer sentiment fell to 96 in May from April’s 96.6 and below consensus projection of 98. The decline in consumer confidence deteriorated because of lower expectations for the economy. Consumer expectations for inflations rose to 1.6% in May, as compared with 1.5% in April.
Meanwhile, confidence indicator for manufacturing industry dropped to 105.3 in May from 107.2 in April. It was below consensus expectations of 107. Sentiment indicator for private services sector in May fell to 100.1 from 102, whereas for total business sector, sentiment dropped to 103.7 from 106.1.
Overall, confidence indicator’s downward trend witnessed in 2016 implies that the economic slowdown is approaching. However, the indicator continued to be at decent level and is in line with an economic growth rate of 3% y/y, said Nordea Bank in a research report.
