Norwegian retail sales rise above expectations in March

Norwegian retail sales rose above expectations in March. Still the trend is not quite solid, noted Nordea Bank in a research report. Retail sales rose 1.1 percent sequentially in the month, as compared with consensus expectation of 0.6 percent rise. Last month retail sales had dropped 0.8 percent.

Norway’s retail sales have generally surprised on the downside since last summer and is little changed over the same period. Today’s figure did not change that overall scenario. On average, retail sales dropped 0.5 percent from the fourth quarter of 2017 to the first quarter of 2018. However, the wider figures for total consumption rose at a sound rate in the third quarter as well as in the fourth quarter.

According to Nordea Bank, strong growth in private consumption is likely in the future, along with solid growth in employment and in real wages. Overall, there is no reason to alter view on Norges Bank. The two retail sale figures seen since the March meeting has on average been slightly on the positive side, but not more than one should expect given the central bank’s projection.

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