Swedish retail sales rise in May, solid upward trend in retail sales likely to continue

Swedish retail sales rose both sequentially and on a year-on-year basis in May. The retail sales grew 2.4 percent year-on-year and 0.4 percent month-on-month. This was slightly better than anticipated but balanced by the downward revisions to April.

According to a Nordea Bank research report, the strong upward trend in retail sales is expected to continue. Short-term indicators of retail sales came in mixed. While retailers’ assessments of their sales situation are muted, consumer sentiment continues to be relatively high. In all, households financial conditions are likely to remain favourable too going forward. Employment is likely to further rise and mortgage rates are most likely to remain low. However, stagnant house prices are expected to dampen retail sales.

The data for household credit growth was also released. Overall household credit rose 6.9 percent in May on year-on-year basis. The trend in credit growth has remained flat over the past two years.

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