Swedish retail sales rises above expectations in April, grows 3.6 pct year-on-year

Swedish retail sales for April came in better than anticipated, easing concerns that developments in the housing market would be a drag on consumption. Sweden’s retail sales grew 0.6 percent sequentially in April and 3.6 percent year-on-year. This was above the projections of 2 percent year-on-year.

The first quarter figures were downwardly revised, though, to 1 percent from 1.5 percent on a year-on-year basis. For instance, the revised data indicate that retail sales fell in February by 0.3 percent year-on-year.

In recent month, retail sales have been volatile, with a sluggish start of the year but a rebound in March and April. The better than anticipated reading for April will lower some fears that the downturn in the housing market would weigh on household’s propensity to spend.

“We nevertheless deem the Riksbank forecast for household consumption at 2.5 percent for the full year of 2018 as being too high”, stated Nordea Bank.

Meanwhile, figures indicated that trade balance remained at SEK -6.5 billion, one of the lowest readings ever. Exports have levelled out and are at the same level as in November last year. Indicators came in mixed and imply that export growth has peaked, indicating towards downside risks of forecasts for 2018. Imports are rising faster, explaining the low trade balance.

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