The Economic Institute’s new tool, the barometer indicator, measures the view of the Swedish economy. The basis comes from surveys that are sent out to households and businesses.
The indicator rose by 1.9 units to 95.0 in April and all parts of the economy contributed to the rise.
A value of 100 is medium and above that the economy is strong. A value above 110 represents a really strong economy. If it has fallen to 90, the economy is weak.
In April, increases are reported on all fronts. Among other things, the retail trade rose by 4.4 percentage points to 102.7 and the construction industry by 3.9 percentage points to 97.0. Households rose by 1.3 percentage points but remain at low levels with a value of 88.9.
The economy on the right track
The announcement about the Swedish economy should be seen as positive, according to Alexander Norén.
– We have been down to really low levels. Since then, we have been ticking upwards for several months in a row. Now we continue on this optimistic view that the future is better than yesterday.
What is also positive about the report is that the companies do not seem to have any plans for large price increases.
– It is good news if you are the Riksbank and are reading this ahead of an interest rate announcement on May 8, says Norén.
Hear Alexander Norén discuss a potential rate cut in the video above.
