Sweden businesses more pessimistic over economy, central bank survey shows

STOCKHOLM, June 10 (Reuters) - Swedish businesses have become more pessimistic about economic developments with worries increasing that trade tensions will lead to lower growth in the months ahead, a survey by the central bank showed on Tuesday.

The effects of President Donald Trump's on-again, off-again tariffs have so far been relatively small, according to the businesses surveyed.

"However, the different announcements on tariffs are creating an unpredictability that is making customers more cautious and companies' planning more difficult," the Riksbank said in a statement.

"In the long run, many companies also see a risk that the trade conflict will lead to subdued global demand."

The survey chimes with purchasing managers' indices.

Activity in Sweden's manufacturing sector dipped in May though the services sector fared slightly better. However, neither index is much above the 50-point cut off that divides growth from declining activity.

With the economy weak and a benign inflation picture, there is a growing consensus among analysts that the Riksbank will cut the policy rate at the June 18 meeting.

In May , the Riksbank held the policy rate unchanged at 2.25%, but opened the door for a possible cut in the months ahead if its main scenario of weaker growth and lower inflation pans out.