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Norway’s retail sales fell by 2.9 percent during the month of June, following a stronger-than-expected rise in May.
Goods consumption, which also includes car sales, fuel and electricity and correlates more with goods consumption in the national accounts also fell during the month by 0.8 percent, albeit rising by 1.5 percent in the second quarter of this year.
The latter’s rise is well consistent with the Norges Bank view that weak consumption growth in Q1 was temporary and that growth would pick up. This supports expectations of a rate hike to 0.75 percent in September, as the central bank had signalled in June, DNB Markets reported.
