Swedish Households: How the confidence indicator affected trade
The Swedish confidence indicator has shown a notable shift, falling by 3.3 units compared to the typical normal situation, resulting in a sentiment that is weaker than usual. This move has had an interesting impact on the broader market, particularly in trade. However, while the confidence indicator itself has seen changes, the current context includes a review of companies’ views on the situation, with a focus on the trade cycle as a whole.
For thetrade cycle as a whole, the industry indicates that there were indeed some minor adjustments, despite no significant shifts. However, a critical point addressed by KI (the Higher Index to Concern and Commercial Intelligence organization) is growing: companies have raised their prices in trade upwards to the highest level since May 2023, a change thatetti suggests is a "current domestic challenge to stay relevant." This upward adjustment has been part of the trend, indicating that despite the external factor, the industry is capable of limiting price increases to an acceptable level.
On the part of price expectations, KI reports that nearly all companies in the daily goods trade sector believe there will be higher prices, with an emphasis on this issue being most pronounced in that segment of trade. This sentiment is a concern for the industry, as it suggests that trade is becoming more competitive and expensive, potentially impacted by the confidence indicator’s downward shift.
