Sweden’s economic sentiment improved in July, signaling stronger than normal economic growth, survey data from the National Institute of Economic Research showed Wednesday.
The economic tendency indicator, which reflects how firms and consumers view the economy, rose more-than-expected to 102.7 in July from 101.6 in June, which was revised up from 101.3. It was forecast to rise to 101.5.
The manufacturing, services and construction indicators strengthened in July, while the indicators for the consumer and retail sectors declined from the prior month. The confidence indicator for the total industry gained 0.9 points to 105.0 in July.
The manufacturing confidence index rose unexpectedly to 103.7 from 101.8 in June, which was revised up from 101.3. However, economists had expected the index to fall to 101.5.
The confidence indicator for building and civil engineering grew 3 points to 105.3 and that for the private service sector rose to 103.5 from 102.5.
Although the retail indicator fell to 107.5 in July from 109.8, it stood well above the historical average, implying a very strong situation.
Consumer confidence dropped unexpectedly, with the index falling 1.2 points to 96.4 in July. The indicator was forecast to rise to 98.9.
Nonetheless, the indicator has above the historical average for the third straight month, which indicates slightly stronger than normal growth of the Swedish economy.
The material has been provided by InstaForex Company – www.instaforex.com