SWEDEN
The Economic Tendency Indicator bounced 3.6 points to 97.2 in November, to its highest since July 2022. Although sentiment remains below the long-term average, all sectors saw an improvement, led by manufacturing and construction.
- This is another tentative indication that Riksbank policy easing is beginning to feed through to the real economy, particularly with rate-sensitive sectors seeing the largest increases in November. However, improving sentiment will need to be corroborated with hard data to signal that the Riksbank’s base case of an economic recovery in 2025 is playing out.
- Consumer confidence rose for a 14th consecutive month to 102.0, its highest since December 2021. Within the details, households’ perceptions of the financial situation versus a year ago improved to -1 (vs -6 prior). However, “their view of whether now is a good time to make major purchases is deeply negative, and this was by far the weakest question in the indicator”.
- Expected prices in the manufacturing industry fell notably to 3 (vs 10 prior), while services expected prices rose a touch. These developments support the Riksbank’s base case for further easing. Meanwhile, expected employment indicators generally ticked up.
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