Swedish consumer confidence index rises above expectations

The NIER’s tendency surveys show that the Sweden economy is performing well. The households’ inflation expectations have risen to the highest level since 2012. The NIER has stated that it is the “Most positive view of demand for a decade”. The report is genuinely strong, but sentiment in the manufacturing sector has dropped slightly following the record reading in September.

Manufacturing industry sentiment dropped from 124.6 to 121.1, whereas private services sector confidence rose slightly to 104.7. Companies’ employment plans in the business sector rose and indicate towards a continued employment growth. Labor shortage increased further and is on par with the earlier record in 2000. Sentiment in the total business sector dropped slightly to 109.9 from 110.4.

Consumer confidence rose more than expected to 105.3, as compared with the expected 101.5. The macro as well as the micro index rose. Household’s inflation expectations rose to 2.8 percent from September’s 2.5 percent. The overall economic confidence has come in at 113.3, as compared with the consensus expectations of 112.2.

“The sentiment surveys suggest that GDP growth should rise, not moderate as predicted by most economists. The current level of the ESI has historically been consistent with a GDP growth at 6 percent y/y”, stated Nordea Bank in a research report.

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