Norwegian retail sales weaker than expected in July

Norway’s retail sales came in weaker than anticipated in July; however, there is quite a noise in the data to give one month too much weight. Retail sales in the country dropped 0.6 percent in July in sequential terms following a 0.6 percent month-on-month drop in June. Consensus projection was for a rise of 0.3 percent month-on-month.

The main scenario still holds. Real retail sales and therefore goods consumption move around sideways. The lack of growth is possibly because of the robust increase in prices of goods. But because of a solid growth in consumption of services, total private consumption is performing quite well. This is one of the reasons why mainland growth is much better than anticipated.

Today’s retail sales report is unlikely to have any influence on Norges Bank’s rate decision, said Nordea Bank in a research note.