Since the pandemic, the consumer in Sweden has been both cautious and price-conscious.
I think many consumers are burned after the last few years, with inflation shocks, high interest rates and the cost of living crisis we have experienced. Instead of opening the wallet, the money has been put aside.
And without traction from households, the economy will continue to tread water.
Household consumption accounts for about 45 percent of Sweden's entire GDP, so it's a very significant part.
"Halved food VAT a big thing"
Now, HUI, which is owned by the trade organization Swedish Trade, predicts that retail is on its way to taking off again.
To start with, the autumn budget contains many stimuli that will revive consumption. Then I mean broad tax cuts, increased housing allowance. And the halved food VAT is a big thing that I think will give a boost.
And on that, we likely have an interest rate cut during the autumn. All of this together sends signals to consumers that the tough years are behind us and that better times await.
He also means that changes are already visible in Swedes' purchasing patterns. Now there is room to spend money on things that were previously had to be abstained from.
The capital-intensive industries, such as the furniture, home electronics and white goods industries, are now showing positive growth figures. I think that's a very good economic indicator that shows that the situation has actually started to turn.
Record for Christmas trade
He believes that we will see a new record for Christmas trade this year.
The natural reason why Christmas trade always sets records is that the population is increasing. But looking at the economic situation, we are leaving a couple of years behind us when we have been extremely frugal.
Trade may not expect consumers with spending pants on, but at least that we are a little more willing to shop than we have been in recent years, says William Lindquist.
