Sweden Economic Sentiment July 2022

The economic tendency indicator (ETI) came in at 101.3 in July, down from June’s 105.7. July’s result marked the weakest sentiment since January 2021. As such, the index moved closer to, but remained above the 100-point threshold. Readings above 100 indicate stronger economic growth than normal, while readings below 100 indicate weaker economic growth than normal.

The fall came on the back of a deterioration in both the manufacturing and retail subsectors confidence indicators. Meanwhile, the business confidence subsector indicator dropped to 108.0 in July, down from June’s 110.9. Similarly, the consumer confidence sub-indicator fell to 54.1 in July, down from the prior month’s 66.5, and marking the lowest reading since March 1993.

FocusEconomics Consensus Forecast panelists see fixed investment increasing 1.3% in 2022, down 0.8 percentage points from last month’s forecast, and 1.9% in 2023. Panelists see private consumption growing 2.8% in 2022, which is down 0.1 percentage points from last month’s forecast, and 1.3% in 2023.