Sweden: Economic sentiment dips in December but remains elevated
December 21, 2017
The economic tendency indicator declined from a revised 113.8 in November (previously reported: 114.1) to 112.5 in December according to the National Institute of Economic Research (NIER), marking the ninth successive month above 110.0. Values above 100.0 indicate stronger growth than normal, while values above 110.0 indicate much stronger growth than normal.
December’s drop was driven by slightly less optimistic sentiment in the manufacturing, building and retail sectors compared to the prior month, while sentiment in the private service sector improved. However, all sectors remained firmly in optimistic territory.
The upbeat mood among firms has led to strong employment growth so far this year, and this in turn has fueled optimistic consumer sentiment. In December, consumers remained more upbeat than normal regarding their finances and the Swedish economy.
Author: Oliver Reynolds, Economist