Sweden: Economic sentiment improves slightly in April
The economic tendency indicator rose to 102.7 points in April from March’s revised 101.9 points (previously reported: 101.7). Values above 100.0 indicate stronger economic growth than normal, while values above 110.0 indicate much stronger growth than normal. Following the notable loss of traction in the first quarter, the only slight pick-up in April suggests weaker momentum may have carried over into Q2.
April’s uptick came on the back of a modest rise in retailers’ confidence, which is now above historical average, and a marginal improvement in sentiment in the manufacturing sector. Meanwhile, confidence in the construction sector was relatively stable at a high level, thanks to firms’ positive assessment of their order books. On the other hand, service sector sentiment retracted slightly.
Consumers remained downbeat in April despite a slight improvement compared to the prior month. The improvement was largely due to households’ more optimistic view of their personal finances. Nevertheless, consumers’ pessimistic outlook on the economy held back the rise in the headline figure.