Swedish household consumption rises above expectations in February

Swedish household consumption rose above expectations in February; however, consumption was probably stimulated by some temporary factors. Household consumption rose 0.5 percent sequentially in February and 1.7 percent year-on-year. Data for prior months were revised and the upward trend is stronger according to the new data. The outcome was better than anticipated, noted Nordea Bank in a research report.

However, consumption growth is modest considering the swift growth in population. The unusual cold weather appears to have stimulated consumption in February by higher use of energy.

“We expect housing market developments to weigh on demand, and the Riksbank’s forecast for household consumption for FY 2018 at 2.9 percent looks too optimistic”, added Nordea Bank.

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