European Economic News

Swedish Economic Sentiment Weakens For Second Month

Sweden's economic confidence deteriorated for the second successive month in May, contrary to economists' forecast for an improvement, indicating that growth in the Swedish economy is much weaker than normal, latest data showed Friday.

The headline economic confidence index dropped to 91.9 in May from 93.8 in April, marking the second consecutive decrease, the National Institute of Economic Research (NIER) said. Economists had forecast the index to rise to 94.5.

Driving the fall in overall confidence, the sub-indicator for the manufacturing sector slid to -15 in May from -9 in April. The index was forecast to improve to -8. The slump reflected generally weak new orders, and greater-than-normal dissatisfaction with order books.

Czech consumers were less upbeat about their finances and the economic situation. The relevant sub-index decreased to 3.6 from 5.2 in April. Economists were looking for an increase to 6.5.

However, the indicators for the retail trade and the private service sector did not change notably during the month, while there was a rise in the indicator for the building and civil engineering industry.

by RTTNews Staff Writer

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