Norway’s retail sales rebound in January but weak trend scenario remains

Norway's retail sales recovered in January 2016. It grew 0.9% m/m after declining 1.3% in December. Consensus expectation was for 0.3% growth. The recovery in sales data makes is slightly less concerned regarding the recent weakness in retail sales; however, it does not change the overall scenario of a weak trend in retail sales. This weak trend suggests higher price growth on goods because of a weaker NOK, rather than more concerned consumers.

Private consumption is expected to be on the weaker side of the forecast, looking at the flat trend in retail sales and consumption of goods. However, private consumption consists of consumption of services that is expanding at a stronger rate.