Sweden's economic confidence saw a significant improvement in March, reaching the highest level it has seen in one-and-a-half years. This is according to a survey issued by the National Institute of Economic Research. The Economic Tendency Index, which measures this confidence, rose to 93.1 in March, up from 90.7 the previous month, proving the highest recorded figure since it reached 93.7 in September 2022.
Notably, the service sector displayed the largest increase in economic confidence amongst the various industry sectors, with its own confidence index jumping 3.1 points to reach 93.8 in March. This increase was predominantly attributed to positive expectations for future demand and positive reviews of firms' performance over the prior three months.
In the manufacturing industry, the level of confidence also witnessed a slightly positive trend, rising to 98.7 in March from 98.4 in February. However, it remained below the usual standard. On the other hand, the confidence index for the construction industry experienced a drop of 2.1 points to settle at 92.6.
The survey further showed that consumer confidence index had strengthened to 87.5 in March, up from 83.0 in February. While consumers painted an optimistic picture of the economy's prospects for the following year, they remained considerably negative about its performance over the past year.
