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Sweden Economic Sentiment Rises More Than Forecast

Sweden's economic sentiment improved in May suggesting stronger economic growth than normal, 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 101.4 in May from 99.2 in April. It was forecast to rise to 100.9.

The manufacturing and consumer indicators strengthened in May, while the retail, service and construction indicators declined from the prior month. The confidence indicator for the total industry gained 1.1 points to 105.1 in May.

At the same time, the manufacturing confidence index rose notably to 100.5 from 94.2 in April. It was above the expected score of 97.1. The increase is due mainly to firms being more positive about their order books.

Although the retail indicator fell to 110.8 in May from 111.6, it stood above 110, implying a very strong situation.

Consumer confidence improved notably, with the index rising 1.9 points to 98.8 in May. The indicator was forecast to rise to 98.5.

Nonetheless, the indicator was just over a point below the historical average, which suggests that consumers are more pessimistic than normal about the economic situation.

The situation in the construction and service sectors can be considered stronger than normal. The confidence indicator for building and civil engineering dropped 7.4 points to 102.9 and that for the private service sector dipped to 103 from 104.

by RTTNews Staff Writer

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