Swedish retail sales grow in July, trade balance records deficit

Swedish retail sales grew on a sequential basis and on a year-on-year basis in July. On a year-on-year basis the retail sales growth came in line with consensus expectations at 3.7 percent. Meanwhile, on a sequential basis, the rate of growth came in above the consensus expectations at 0.9 percent, as compared with the expectations of 0 percent.

However, the figures for June were revised down considerably. In all, the upward trend in retail sales continued to be intact. Short-term indicators of retail sales are quite upbeat. The assessments of retailers of their sales situation have rebounded in recent months and consumer sentiment continues to be decent.

Meanwhile, the trade balance, came in at a deficit of SEK 0.5 billion in July, which is greatly unchanged compared to one year ago. Both imports and exports show upward trends although the momentum for both variables has softened in recent months. In general, indicators of exports continue to hint at a rebound, noted Nordea Bank in a research report.

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