Norwegian retail sales rise mildly in July, likely to rebound in August

Norwegian retail sales rose in July; however, it continues to be weak due to summer weather. On a sequential basis, retail sales were up 0.7 percent in July, as compared with consensus expectation of a rise of 1 percent. Retail sales had dropped 2.9 percent in June. On a year-on-year basis, the retail sales grew 0.1 percent. The summer weather probably held back retail sales.

The surge in electricity prices in 2018 signifies less purchasing power. Still today’s figure is unlikely to be a reflection of that, but of the summer weather. According to a Nordea Bank research report, retail sales are expected to recover in August.

“Norges Bank will probably mention the weak retail sales at the September meeting, but probably not do too much out of it”, added Nordea Bank.