Sweden: Economic sentiment hits record high in May
The economic tendency indicator (ETI) came in at 119.3 in May, up from April’s 113.5 and marking the strongest sentiment in the indicator’s 25-year history. Readings above 100 indicate stronger economic growth than normal, while readings below 100 indicate weaker economic growth than normal.
The rise in May was driven by a broad-based improvement across all sub-sectors. Meanwhile, the consumer confidence sub-indicator rose to 112.3 in May, pushing further into positive territory and hitting the highest level since December 2010 (April 2021: 103.6), while the business confidence sub-indicator increased to 116.2 from 112.3 in April.
Commenting on the record reading, Maija Kaartinen and Cathrine Danin, analysts at Swedbank, noted:
“The signals of a fast and broad recovery and well anchored inflation expectations are calming for the Riksbank. In the coming months, the ETI should remain strong as vaccinations proceed, and the summer will benefit many services sectors.”