Swedish data surprised on the upside

The Swedish krona weakened 5 öre against the euro when Prime Minister Stefan Löfven announced his Cabinet reshuffle on Thursday, although a number of economic indicators surprised on the upside.

Statistics Sweden reported that the employment rate, not seasonally adjusted, was 7.4% in June; analysts had forecast a rate of 7.5%. The seasonally adjusted employment rate was 6.4%, compared to 6.6% in May.

The National Institute of Economic Research (Konjunkturinstitutet) said its economic sentiment index had increased in July to 112.4, from 112.2 in June. Sentiment in the manufacturing industry had increased unexpectedly. However, consumer sentiment fell to 102.2, from 102.6.

The Institute reported labour shortages, which prompted SEB bank to question how long the Swedish central bank could ignore this trend.