Sweden’s NIER’s tendency survey continued to paint a bright picture of the economy; however, lesser than earlier this year. Sentiment in the manufacturing sector dropped, while order intake stays healthy. There were rather small changes in sentiment for other sectors. Companies’ employment plans continue to be expansionary.
Consumer confidence dropped 1.9 points to 100.3. The domestic political turbulence is expected to have been a drag on sentiment in August, noted Nordea Bank. Household’s inflation expectations dropped markedly to 2.1 percent. Inflation expectations are at the lowest levels so far in 2017, which is slightly surprising given the upturn in actual inflation.
Retailers’ price plans dropped further and show lower inflation going forward. Overall, the most important in the survey is that inflation expectations dropped. Also, the drop in retailers’ price plans would be noticed by the central bank. There are some questions marks regarding household, but sentiment should rise in the months ahead. The fall in sentiment in the business sector still indicates good growth. Retailers’ price plans dropped further and indicate lower inflation going forward, stated Nordea Bank.
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