Swedish household consumption rebounds in April, business sector to continue to perform in months ahead

Swedish household consumption bounced back in April. The consumption data picked-up in April, owing to major calendar effects. Swedish household consumption rose 1.4 percent sequentially after falling 0.3 percent in March. The March’s data was revised up from the initial print of a decline of 0.4 percent. On a year-on-year basis, household consumption rose 4.3 percent, as compared with March’s data of 2.3 percent. The March print was revised up from the initial figure of a rise of 1.9 percent.

The major swings reflect calendar effects because of the Easter. The rebound in April implies that consumption would expand noticeably in the second quarter, possibly slightly more than projected, noted Nordea Bank in a research report. The bigger picture is that savings are high and household consumption is modest given all favourable conditions, while households are more active on the housing market, stated Nordea Bank.

Meanwhile, business sector’s production growth continues to be elevated at about 4 percent year-on-year. It is lower than March’s gain of 5.2 percent, which is upwardly revised from the initial data of 4.2 percent. On a sequential basis, business sector production dropped 0.1 percent from the earlier month’s print of a rise of 0.1 percent. In the construction industry, production rose by a full 19.7 percent year-on-year. Indicators imply that the business sector would continue to perform in the months ahead, added Nordea Bank.