Following the weak July print, retail sales resumed its upward trend in August. Volume sales increased by 1.9% over the month and by 4.6% over the year. This was stronger than forecasts. Sales in durable goods rose by a full 7.1% y/y, while non-durable goods increased by 1.8%.
The strong outcome is consistent with the positive income, employment, house price and credit growth trends. Also, previously reported sales in some chain stores increased between August and July.
All in all, today’s figures suggest that the growth in domestic demand is holding up well.
Details, August
y/y: 4.6 % (Nordea 4.0%; consensus 3.5%, prior 2.2% revised from 2.3 %)
m/m: 1.9% (Nordea and consensus 0.7%; prior -1.1% revised from -0.7 %)
Nordea