Swedish manufacturing confidence sentiment index rises to 20-year high in April

Sentiment in the Swedish manufacturing sector rose strongly in April. The reading rose to the highest since 1996. The NIER March Tendency Survey showed that the manufacturing confidence index rose from 112.7 in March to 123.2 in April.

Consensus projection was for the sentiment to rise to 113.4. Firms in Sweden are particularly satisfied with the order stocks. More number of people are being employed and labor shortage is rising, noted Nordea Bank in a research report.

Meanwhile, consumer sentiment also rose higher than normal; however, it improved just slightly from March. The consumer confidence index rose from 102.6 to 103.4. Consensus projection was for the sentiment index to rise to 103.5. For the overall economy, the sentiment index rose to 112.8 in April from 109.2 in March. This also came in above the consensus forecast of 109.5.

Household one year inflation expectations were 2.7 percent. The numbers released today contribute to the upside risks to the GDP growth projection of 3 percent for this year, stated Nordea Bank.