Swedish retail sales rise sharply in April, likely to drop again in May

Swedish retail sales rose sharply in April, but the rise is possibly temporary. Sequentially, retail sales rose 1.9 percent, as compared with consensus expectations of a 0.6 percent rise. On a year-on-year basis, the retail sales rose 3.9 percent, coming above consensus expectations of a rise of 1.5 percent.

Food sales, related to the Easter holiday, mainly drove the April sales. However, retail sales are expected to drop again in May, noted Nordea Bank in a research report.

“Looking ahead, we expect retail sales as well as total consumption to rise, albeit more slowly than the Riksbank’s rather optimistic forecast. Sluggish domestic demand is yet another factor suggesting that the Riksbank will stay on hold for long”, added Nordea Bank.