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Unpicking Sweden’s labour data; DNB to cut again

The larger-than-expected increase in Swedish unemployment in July was not as bad as it first appeared given that it mainly reflected fewer summer jobs this year. While Sweden has not been immune from Covid, despite its light-touch lockdown, we expect it to be the best of a very bad bunch in Europe this year. Next week, we expect July surveys from Sweden and Switzerland to show that economic conditions continued to improve at the start of Q3.

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