Swedish confidence improves as growth
Photo: Jessica Gow / TT

Swedish confidence improves as growth beats expectations, price hikes loom

Sentiment is stronger than normal among Swedish households, according to a barometer from the National Institute of Economic Research (KI). And more companies than normal expect to be able to raise prices. At the same time, Swedish growth in the second quarter was clearly greater than expected, according to recent figures from Statistics Sweden (SCB).

The so-called barometer indicator rose to 105.1 in August, from 104.6 in July, according to KI. The increase is mainly explained by improved sentiment in the services sector.

There are also more positive views among households. The household confidence indicator rose to 98.0, from 97.2.

"Household sentiment strengthened in August and is now normal for the first time since November 2024," KI writes in a press release.

More expect to be able to raise prices

The development could also pave the way for price increases, according to the report.

"A larger proportion of companies than normal in the business sector expect to be able to raise prices over the next three months," writes KI.

At the same time, Statistics Sweden (SCB) reports GDP growth of 1.6 percent in the second quarter of this year compared with the previous quarter. Adjusted for the calendar and compared with the second quarter of last year, growth was thus 3.3 percent.

Analysts' expectations averaged 2.5 percent growth compared with the second quarter of last year, according to Bloomberg.

"GDP increased broadly in the second quarter with strong contributions from gross fixed investment, exports and household consumption," says Jessica Engdahl, head of section at the National Accounts, in a press release.

Substantial annual increase in retail sales

For retail trade, there was a decline of 0.2 percent in July compared with the previous month, according to Statistics Sweden.

"The sales volume of non-durable goods retail decreased by 0.4 percent, while sales volume in grocery retail excluding Systembolaget increased by 0.9 percent," writes Statistics Sweden.

But on an annual basis, there was a substantial increase.

"Compared with the corresponding month in 2025, retail sales volume in July increased by 6.2 percent in calendar-adjusted figures. Retail trade increased by 8.6 percent and grocery trade excluding Systembolaget increased by 5.3 percent," writes Statistics Sweden.

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AuthorTT News AgencyEnglish edition by Sweden Herald, adapted for our readers
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