Swedish Confidence Advances as Economic Recovery Gathers Speed

Swedish consumer confidence improved for a third month in August, rising to the highest in two years, as Europe emerged from a recession and the government signaled more tax cuts.

The consumer confidence index rose to 99.3 from a revised 98.3 the previous month, the Stockholm-based National Institute of Economic Research said today. A manufacturing confidence index rose jumped to 100.1 from a revised 94.9.

“Consumers’ assessment of both their personal finances and the Swedish economy is more positive than in July, and the Micro Index indicates that households are more optimistic than normal about their personal finances,” NIER said in a statement.

The euro zone emerged from a record-long recession last quarter, expanding for the first time since 2011, helping the export-dependent Nordic economy. Sweden’s central bank last month said it will keep its main lending rate at 1 percent until the second half next year, while Prime Minister Fredrik Reinfeldt this month called for a fifth round of income tax cuts to support demand.

To contact the reporter on this story: Johan Carlstrom in Stockholm at jcarlstrom@bloomberg.net.

To contact the editor responsible for this story: Jonas Bergman in Oslo at jbergman@bloomberg.net

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