Households are holding on to their money tightly. According to the Statistics Sweden (SCB), consumption decreased by 0.6 percent in June compared to May – and compared to June last year, the decline was 1.4 percent.
We have had it very good in Sweden for a long time, so we are not quite used to the downturn that has been, says John Magnus Roos, consumption researcher and associate professor of social psychology at the University of Borås.
But even if the low-conjuncture still prevails in Sweden, there is hope for better times. And with that, one can expect consumption to take off.
Roos believes in a boost for the products and services that consumers have abandoned during tough times.
"Even more momentum"
Something that Swedes have chosen to abandon in recent years is sustainable products, not least ecological food. There, a significant decline can be seen since interest rates began to rise, according to Roos.
Eating out at restaurants is also something that many households have chosen to do more sparingly, or not at all.
Restaurant visits increased a lot in the decade before the pandemic, and it's something that Swedish consumers seem to feel good about. There, one can think that there will be a return.
Furthermore, purchases of new furniture have decreased significantly. Instead, second-hand items, both among clothes and furniture, have taken off even more.
Something that households have not given up to the same extent is traveling abroad.
It seems to be something that we really want in our lives and that research has shown contributes to well-being. There, one can think that there will be even more of it ahead, even if the krona is still weak.
No stability yet
But how quickly consumption will take off when the economy improves is difficult to say.
If you have the opportunity to consume more, you will do so. It's a big part of our culture and identity.
On the other hand, John Magnus Roos believes that many have drawn some lessons in recent years.
Households are aware of what can happen. You know that the stock market can go down, property prices can fall. You don't take it for granted that everything will go up, he says, emphasizing that the situation is still very uncertain:
There is no stability that is perceived now in the economy, it's a wait-and-see attitude towards what will happen, says John Magnus Roos.
