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Government bonds likely to benefit less from ‘safe haven’ inflows going forward due to worries over valuation and volatility, says DNB Markets
Swedish housing starts fall in Q2 2019, likely to decline further going forward
Swedish housing starts dropped in the first half of this year. The new figures indicate a sharp downward trend since the peak in 2017. Statistics Sweden’s preliminary figures indicate that the number of housing starts stood at 13,350 in the second quarter, down 7 percent year-on-year. In the first half of 2019, starts came in at 24,650, down 12 percent year-on-year.
On a seasonal adjustment basis, the number of housing starts came in at 12,200 in the second quarter, suggesting an annual pace of around 48,700, down from the peak at about 17,000 per quarter in 2017. Figures for previous quarters were revised and the new figures indicate a sharp downward trend since 2017.
“Declining housing investment is already weighing on GDP growth, shaving off some 0.5 percent point of the annual GDP growth. We fear that housing starts will decline further going forward, which is bad news as for the growth outlook”, said Nordea Bank.