Swedish economic sentiment index rises further in August

Swedish Economic Sentiment Indicator rises further in August to the highest level so far in 2018. The overall economic sentient index (ESI) rose to 111.5 from 109.7. Manufacturing industry and households have become more optimistic in August. Manufacturing industry confidence index rose to 121.8 from 118.8. The details within manufacturing industry were less encouraging, though. For example, exports orders came in weak.

Households’ inflation expectations stayed high at 3.4 percent in August. According to old method, expectations rose 2.7 percent. Consumer confidence index rose to 102.6 from 100.7. Private services sector confidence index rises to 103.7 from 101.5.

Retailers’ price plans fell but from a high level. Price plans indicate towards higher inflation, possibly due to the subdued krona.

Overall, the survey is strong and is mainly a welcome news for the Riksbank. The survey continues to point towards solid GDP growth, and hints at higher inflation, noted Nordea Bank in a research report.