Bloomberg News

Swedish Consumer Confidence Plunges as Crisis Saps Optimism

September 28, 2011

(Updates with inflation expectations in fourth paragraph.)

Sept. 28 (Bloomberg) -- Swedish consumer confidence fell more than estimated in September as a deepening European debt crisis sapped optimism in the largest Nordic economy.

The consumer confidence index fell to minus 5.8, the lowest since June 2009, from 4.3 in the prior month, the Stockholm- based National Institute of Economic Research said today. Economists predicted 1.2, according to the median of 14 forecasts in a Bloomberg survey. An index for manufacturing confidence held at minus 3.

The Swedish central bank this month left its benchmark repo rate unchanged at 2 percent, halting a cycle of seven consecutive increases since July last year. The bank said fiscal tightening in Europe and the U.S. will slow growth in Sweden’s economy, where exports account for about half the output.

The institute’s survey also showed expectations for inflation in 12 months fell to 2.3 percent from 2.5 percent.

--Editors: Jonas Bergman, Tasneem Brogger

To contact the reporter on this story: Johan Carlstrom in Stockholm at jcarlstrom@bloomberg.net.

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net


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