Norway's goods consumption index, which is the main indicator of private consumption of goods in the national accounts remained unchanged m/m in April, following a decline of 0.5 percent in March.
Norway’s April retail sales were unchanged from March’s very weak print of 0%. The consensus expectations were for 1%. Retail sales were expected to recover following quite a weak print in March, said Nordea Bank in a research report.
April figures for retail sales and goods consumption were clearly weaker than expected and highlights the limited impact of an early Easter in March. The negative trend we have seen in retail sales in recent months is in line with lower household income growth. Norges Bank projected consumption growth at 1.6 percent y/y in 2016.
“Trend growth is now very low, which points to continued weak consumption growth in the second quarter. Today’s figures add some downside risk to Norges Bank projected consumption growth, which supports the path of future rate cuts.” said DNB Bank in a report.
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