Sweden: Economic sentiment edges down in March
March 27, 2019
The economic tendency indicator fell from February’s revised 101.9 (previously reported: 102.4) to 101.7 in March. Values above 100.0 indicate stronger economic growth than normal, while values above 110.0 indicate much stronger growth than normal. The index averaged notably lower in Q1 compared to Q4, pointing to ebbing momentum in the Swedish economy.
March’s figure came on the back of worse sentiment in the manufacturing sector, which more than offset stronger sentiment in the construction and service sectors.
Meanwhile, consumer sentiment remained downbeat in March despite a slight improvement compared to the prior month, with consumers pessimistic regarding economic prospects and declaring themselves unwilling to make major purchases. Weak consumer sentiment appears counterintuitive given the recent strong labor market performance, but can likely be linked in part to a soft housing market.
Author: Oliver Reynolds, Economist