Swedish Confidence Drops as Economy Grapples With Virus Surge
(Bloomberg) -- Swedish overall confidence levels ended a seven-month climb in December, as the Nordic region’s largest economy tightened restrictions to battle a severe surge in Covid-19 infections.
The overall economic tendency survey fell to 95.6, from a revised 97.2 in November, with the drop “largely a result of firms being less positive about the current situation,” the National Institute of Economic Research said in a statement Tuesday.
What Bloomberg Economics Says...
“New containment measures, coupled with the fear of catching the virus, mean Sweden will start 2021 on a weak footing. Contact-intensive services will suffer most before the arrival of the vaccine helps the recovery take hold next year.”
--Johanna Jeansson, Bloomberg Economics
Manufacturing confidence dropped to 106.9, from revised 109.9, while consumer confidence rose to 92.3, from revised 88.6.
The NIER index was released as the government prepared to enact special laws designed to fight the country’s resurgent pandemic.
Despite a renewed jump in cases, Sweden has so far stopped short of introducing a full lockdown, partly because it lacks the legal framework to do more. The new legislation, if passed, would give the government the right to shutter businesses and enforce limits on public transport.
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