Norway released mixed data today. The country’s retail sales on a month-on-month seasonally adjusted basis declined 0.7% in March, following a decline in February. The retail sales data came in much below the consensus expectations of a growth of 0.3% and Nordea Bank’s projection of a growth of 0.8%. The retail sales’ trend is at present downward and weaker than forecast.
In spite of services consumption surprising on the upside, this shows weaker private consumption development that was anticipated by the central bank, noted Nordea Bank. Usually Easter timing has a huge effect on retail sales. There has been higher volatility in retail sales during Easter time in Norway. In 2015, retail sales grew 2% in April, followed by a decline of 3.5% in May.
Norway also released its unemployment data. LFS jobless rate declined to 4.6% in February. In January, the figure was at 4.7%. This signifies that LFS unemployment is moving sideways, according to Nordea Bank.
The Norwegian central bank is unlikely to give much weight on LFS unemployment. Meanwhile, retail sales are on a downward trend and on the weaker side. However, Norges Bank is unlikely to ponder much on March’s retail sales data either, noted Nordea Bank. The central bank is expected to remain with its forecast for unchanged rates in May and June. It is expected to lower rates in September.
