Sweden's retail sales slightly above forecasts, records first rise in three months

Preliminary data from Statistics Sweden showed on Tuesday that the nation's retails sales recovered in August in line with expectations after the drop the previous month. Retail sales rose a seasonally adjusted 0.6 percent month-on-month in August, compared to a 0.8 percent fall in July, better than economists' forecast for a 0.5 percent gain.

Annualised retail sales growth fell short of economists' expectations for a 3.7 percent increase. Data showed that retail sales are still on an upward trend, although at a slower pace compared to last year.

On a working day adjusted basis, retail sales grew 2.8 percent year-on-year after a 0.8 percent gain in July. Sales of consumables decreased 1.1 percent annually, while those of durables increased 5.8 percent.

"We expect growth in sales to slow going forward. Short-term indicators of retail sales have worsened in recent months and, coupled with the slowing housing market, this suggests lower sales growth." said Nordea markets in a research note.