In March, Sweden’s retail sales declined 0.7% m/m, while it rose 1.9% year-on-year, as compared with consensus expectations of 0.4% m/m and 1.9% y/y. The March data came in worse than projection. In recent months, the trend has remained weak. Since November 2015, Sweden’s retail sales have not grown. Moreover, since the beginning of 2016, retail sales’ short-term indicators have deteriorated.
The modest trend of retail sales is likely to continue, according to Nordea Bank. This is possibly because the housing market is likely to decelerate that will be a drag on household consumption. In 2016, Easter holidays came in early in March, while it took place in April in 2015. This might have also led to the calendar adjusted data, noted Nordea Bank.
