Swedish retail sales continued to grow in June, while exports continued to stay soft. On a sequential basis, the retail sales grew 1 percent, whereas they rose 3.5 percent on a year-on-year basis in June.
The calendar effects were considerable in June. Actual sales rose as much as 5.6 percent year-on-year. The rise in total retail sales is a positive news. Nevertheless, it is significant to remember that retail sales only represent parts of household consumption, and other parts are much worse, said Nordea Bank in a research report.
However, households’ financial situation is stable, households are optimistic on their own economic situation and home prices are rising. Therefore, conditions are in place for a continued healthy trend in retail sales and a rebound in total consumption, according to Nordea Bank.
Meanwhile, figures showed that exports of goods continued to be quite soft. The calendar effects make the numbers slightly tricky to interpret, though. Import rose from very low levels.
“As for Q2, net exports will probably be rather neutral to GDP growth year-on-year”, added Nordea Bank.
