2017.05.2417:24:00UTC+00Confidence Indicator for Swedish Economy Remains Elevated, Suggests Strong Momentum in H1

The confidence indicator for the Swedish economy continued to remain elevated in May and indicates towards a continued strong momentum in the first half of 2017. There is nothing yet that implies that Swedish economic growth is about to ease, noted Nordea bank in a research report. For the overall economy, the ESI came in at 111. Meanwhile, in the manufacturing sector, confidence dropped in line with expectations in May. The indicator fell to 117 from 123.2, but it remains on a historical high level.

Meanwhile, in other sectors, sentiment rose further from already high levels.  Consumer confidence rose to 105.9, coming in above expectations of 104 and previous figure 103.4. Households’ inflation expectations remained the same at 2.4 percent. But the old method showed that expectations dropped to 1.8 percent from 1.9 percent in April.

Moreover, retailers’ price plans dropped that implies continued low inflation pressures. Overall, the report suggests a continued high growth momentum in the Swedish economy. More forecasters have assumed that Swedish economic growth will decelerate in the first half of this year. However, there is not much supporting this view, stated Nordea Bank.