Swedish overall economic sentiment index remains unchanged in December

The Swedish Economic Sentiment came in stable in December. Households continue to be negative and employment plans dropped. The overall Economic Sentiment Index remained the same at 106.3 in December, thus still more positive than the historical average but lower than a year ago. Other sectors indicated small changes. Markedly, the total business sector sentiment has fallen in 2018.

The consumer sentiment and manufacturing industry sentiment came in at 96.4 and 116.2, respectively. The negative news is that the plans for employment dropped. Retailers’ price plans fell, but it continues to be high.

The trend for consumer sentiment is weak, indicating continued sluggish household consumption. Households’ inflation expectations rose to 3.4 percent from November’s 3.3 percent.

Overall, the Tendency Survey is difficult to interpret as it has been a poor guide for GDP growth in the last two years. However, the slightly less optimistic confidence in the course of 2018 implies that growth momentum is decelerating, reducing hopes of any sharp uptick in growth, said Nordea Bank in a research report.