Swedish Confidence Measures Unexpectedly Fall on Slow Recovery
The consumer confidence index fell to 98 from 98.8 the prior month, the Stockholm-based National Institute of Economic Research said today. The index was seen rising to 100.2 in a Bloomberg survey of eight analysts. A manufacturing confidence index fell to 94.2 from 100.7, missing the estimate of 100.6.
“The decrease was due to a more pessimistic view of personal finances, with the Micro Index falling more than 3 points,” the NIER said. “Consumers are more upbeat about the Swedish economy, however, with the Macro Index gaining almost 2 points.”
Sweden’s central bank this month said it will keep interest rates unchanged at 1 percent for another year to support a recovery as demand from abroad picks up. The Nordic country’s four-party coalition government last week said it will cut income taxes for a fifth time since coming to power in 2006.
Sweden’s $540 billion economy contracted 0.2 percent last quarter, according to figures from Statistics Sweden published this month. Unemployment (SWUERATE) will rise to 8.2 percent this year from 8 percent in 2012 and decline to 8.1 percent next year, the government predicted.
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