Swedish Household Confidence Hits Highest Level Since 2021

The National Institute of Economic Research reported Tuesday that Swedish household confidence rose to 102.2 in September, the highest level recorded since December 2021. This increase stems from improved household assessments of the national economy and personal finances compared to the previous year.

Broader economic sentiment climbed to 107.1, marking the highest reading since May 2022. Business confidence rose for a sixth consecutive month to 109.3, with specific gains in the service sector, which reached 107.1, and the construction sector, which rose to 102.9 on the back of better hiring plans and order books. Manufacturing confidence remained flat at 106.3.

Households reported a decline in perceived current inflation, which fell to 7.4% from 9.2% in August. However, expectations for variable mortgage rates rose to 4% across one- to three-year horizons.