Big fall in consumer confidence

Consumer confidence in Sweden fell drastically in December, according to a new report by the National Institute for Economic Research (Konjunkturinstitutet).

The institute’s monthly survey showed that while businesses were slightly more optimistic this month than last month, people in general were significantly more pessimistic.

The institute’s consumer confidence indicator fell by 3.5 points to 8.7 – the lowest figure since mid-2005.

The economic tendency indicator, which measures both business and consumer confidence, nonetheless rose from 106.6 to 106.9. Manufacturing industry was responsible for pushing up the index; other sectors were more negative.

Employment growth in Swedish business has been strong in the past month, according to the institute. Overall, businesses expect to continue increasing the number of jobs, but the number of firms expecting to increase staffing is smaller than before.