Sweden consumer confidence slides to two-year low in June

Bloomberg

Consumer confidence slid for a seventh month in Sweden amid sliding housing prices and a tumbling krona, adding to woes as the largest Nordic economy now also faces a possible trade war.
The National Institute of Economic Research’s consumer confidence indicator unexpectedly slid to 96.8 in June, which is the lowest in almost two years. Swedes became more pessimistic about their own personal finances and the overall economy amid turmoil in the housing market. Inflation expectations jumped in the month.
“Despite the fact that we have had an economic boom households are less optimistic than normally,” said Ylva Heden Westerdahl , head of forecasting at NIER. “We find this surprising considering that the real disposable incomes are increasing this year thanks to the expansive fiscal policy. But we think that worries in the housing market are having a negative effect.”
The overall indicator, which also includes business confidence, was little changed at 108.7 and “continues to refl-ect strong sentiment in the Swedish economy,” the NIER said. Nordea Bank AB chief analyst Torbjorn Isaksson said the report was a “mixed bag for the Riksbank.”
The NIER said on Wednesday that the Swedish economy will likely peak this year as falling housing investments will be a drag on growth next year. But a strong labour market will drive up wages and allow for inflation to stabilise around the 2 percent target in 2018 and 2019, it said.