Autumn has been marred by one more negative economic news after another, and the Swedes’ view of their own economy has plummeted. The National Institute of Economic Affairs’ confidence indicator for households, which among other things reflects the view of one’s own economy over the next 12 months, fell during the autumn to the lowest level since the measurements began in 1996.
The depression has rubbed off on our consumption and the Black Friday shopping weekend showed an unusual decline in sales compared to previous years.
– There are many reasons for this, we have been overwhelmed by negative news. Something that affects in particular is inflation. When it rises, households collapse, says Andreas Wallström, to Ekonomibyrån.
Instead of consuming, many have increased their savings. And even if saving is positive for the individual, there is a risk that households will adjust and spend less, according to Andreas Wallström.
– We see that the so-called precautionary saving is increasing. So not only do real incomes shrink, households also save more. It drives the negative spiral of reduced consumption, which in the long run leads to unemployment, he says.
That there are many reasons to worry about the economy is reinforced, according to psychologist Niklas Laninge, by how we handle negative information. People tend to focus more on negative events than positive ones:
– It can almost be described as a psychological constitution, that’s how we function. It can of course feel frustrating, but it has probably had a survival value, he says at the Economic Agency.
See the latest section of the Financial Services Agency “Stop depressing” on SVT play.