Swedish economic confidence index rises further in September, indicates rebound in economic growth

The Swedish Economic Sentiment Indicator rose further in the month of September, suggesting a rebound in the economic growth. The ESI index rose to 94.5. The consumer sentiment index rose to 88.3. Consumers are slightly worried about the Swedish economy, while expectations regarding their own financial situation are more positive than normal, which augurs well for consumption going forward, noted Nordea Bank in a research report.

The total business sector’s sentiment rose to 93.6. Confidence rose in most business sectors, except for the construction sector, which recorded 89.5. Meanwhile, manufacturing industry’s sentiment came in at 105.8, thereby more optimistic than normal. The index for export orders rebounded markedly.

Employment plans rose, underlining that the situation on the labor market has stabilized and is set to rebound. Household’s inflation expectations as well as retailers price plans were mainly unchanged and are neutral for the Riksbank.

“All in all, confidence continues to recover after the corona chock this spring. Hard data have improved substantially and the uptick in sentiment suggests that the recovery will continue. The survey was done before the spread of the virus started to rise again, increasing the uncertainty. Nevertheless, the recovery currently looks stronger than our relatively optimistic forecast”, added Nordea Bank.