Sweden’s retail sales resume upward trend, likely to continue growing in months ahead

Sweden’s retail sales grew in October, coming above consensus expectations. On a sequential basis, Swedish retail sales were up 0.7 percent, in line with consensus projection of 0.8 percent. The monthly figure for the September month was revised up from a decline of 0.6 percent to a decline of 0.3 percent. On a year-on-year basis, Sweden’s retail sales rose 2.4 percent, coming in above the consensus expectations of a rise of 2 percent. The year-on-year print for September month was also upwardly revised from 0.6 percent growth to a rise of 1.6 percent.

The October figures indicate that the country’s retail sales have resumed an upward trend, after hitting the weak patch around the turn of the year, noted Nordea Bank in a research note. Furthermore, the unusual warm weather has possibly been a drag on sales in recent months. Along with the rebounded consumer confidence, this indicates toward continued expansion of retail sales in the months ahead, according to Nordea Bank.

Meanwhile, Sweden’s trade balance came in at a deficit of SEK 2.7 billion in October, as compared with surplus of SEK 3.3 billion in September. Goods exports dropped in the first half of 2016; however, a small rebound is likely. Indicators imply that this trend is expected to continue in the near term, stated Nordea Bank.