Sweden: Economic sentiment dips in January but remains elevated
January 25, 2018
The economic tendency indicator declined from a revised 112.0 in December (previously reported: 112.5) to 110.2 in January according to the National Institute of Economic Research (NIER). However, the indicator still remained elevated, and marked the tenth 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.
January’s drop was driven by less optimistic sentiment in the manufacturing and private service sectors. The drop in the manufacturing sub-index was largely due to firms’ less optimistic views regarding order books, while private service sectors grew slightly less positive about demand and operations. However, both sectors—along with building and retail—remained firmly in positive territory, signaling continuing growth. Consumer confidence inched down in January, although households’ view of their personal finances improved further.
Author: Oliver Reynolds, Economist