Following on from the Riksbank earlier this week cutting rates to zero, we saw the Economic Tendency survey yesterday rising to 104.3 from a revised 101.5 (101.1). The survey is relatively volatile, but is consistent with a pick-up in growth above what is currently projected by the Riksbank. Also out was manufacturing and consumer confidence. Here trends diverged, with manufacturing sentiment rising and consumer sentiment declining. The NIER observed that “all of the business confidence indicators improved — manufacturing by 4.4 points, private services by 3.4 points, building and civil engineering by 1.5 points and retail by 0.2 points — and all are above the historical average. The consumer confidence indicator, on the other hand, fell 4.7 points in October to 2 points below the historical average”. Worth noting that consumers’ inflation expectations rose, albeit from very subdued levels.
Read the full report: FX Daily