Inflation expectations in Sweden as measured in the Prospera quarterly survey showed that 1y and 2y expectations were revised down one tenth to 0.8 and 1.3% respectively while 5y remained unchanged at 1.8%. Meanwhile, GDP expectations were revised sharply higher to 2.3% y/y in 1y vs. 1.5% expected in the March survey. Hence, expectations of lower inflation and better growth.
Swedish service PMI surprised on the upside rising to 58.5, Swedish industrial and service production numbers bounced back as expected. However, at the same time a bit disappointing that orders were down m/m. Finally revised retail sales revised up significantly to 6-7 % y/y in April, probably an Easter effect as main revision is seen in foods. On balance, today’s activity data suggest recovery is on track and slightly bearish for EURSEK.
Source: www.danskebank.com
