Norwegian retail sales miss forecasts, fall unexpectedly in July

Data released by Statistics Norway showed that Norwegian Retail Sales fell to a seasonally adjusted annual rate of -0.6 percent in July, following a 0.6 percent month-on-month drop in the preceding month. Analysts had expected Norwegian Retail Sales to rise 0.3% last month.

The goods consumption index which is the main indicator of private consumption of goods in the national accounts fell 0.8 percent in July, after falling 0.4 percent in June. Weak goods consumption index indicates a decline in household consumption in Q3 unless consumption picks up markedly in August and September.

Seperate data showed Norway's PMI for the manufacturing sector fell by 3.4 points from July to 50.8 in August, also missing forecasts for a reading of 54.5. PMI has been high compared to other indicators for the manufacturing sector for a while and this dips brings it more in line with the development in actual production, which is still not very uplifting.

"Norges Bank probably does not put too much weight on the July figures alone. Today's figures are on the weak side but do not change our view that Norges Bank will keep the policy rate unchanged in September and that the policy rate will remain at today’s 0.5 per cent going forward." said DNB Bank in a report.