Mainland GDP came in at 0.5% q/q as expected and as in Q4 (revised down from 0.6%). This means that the slowdown we saw in growth last year continues in Q1. That should be no surprise and is well in line with Norges Bank’s forecast.
If we look at the demand picture there were no major surprises. As expected consumption grew strongly, while investment in housing fell. The drop in housing will continue due to weak housing starts, while the big question is whether we have seen a turnaround in consumption.
If we have to single out something it must be the very weak investment in the mainland firms (-2.3% q/q). One should be careful doing too much out of one quarter as these figures are volatile. Still there is a downward trend in these investments.
No need to change view on Norges Bank on today’s figure.
Details:
Mainland GDP grew by 0.5 % q/q in Q1 compared to 0.5% in Q4 (revised down from 0.6%
Nordea forecast and consensus was 0.5% while Norges Bank was 0.4%
Nordea