Talking Points:
- Sweden’s Economic Tendency Survey decreased slightly in January to 105.6
- Sweden’s PMI falls in January, but remains expansive at 55.10
- EURSEK remains supported above 9.250
Previously at 105.9, Sweden’s Economic Tendency Survey decreased marginally to 105.6. However, despite the decrease, the situation in January remains strong with firms far more optimistic than consumers.
Improvements were noted in the following industries: manufacturing (+0.9), civil engineering (+0.1), and retail trade (+0.8). Manufacturing firms found current orders and stock levels to be positive while civil engineering firms remained upbeat about their employment plans. Further reflecting the industry’s optimism, January’s PMI remains expansive at 55.10. While down from 55.40, the index remains above the long-term average of 54.37.
Conversely, sentiment regressed among the service sector (-1.5) and consumers (-0.7). Despite improvements in the service industry’s operations, demand for its services is expected to slow over the next quarter. Their view is shared by consumers who have lowered their 12 month interest rate expectation by 0.3%. Furthermore, Swedbank expects the saving’s rate to remain high at 13% and disposable income low as consumers face repayment requirements, in particular an increase in municipal taxes.
EURSEK Daily Chart
Chart Created by Walker England Using MarketScope2.0
