Swedish Retail Sales Unexpectedly Fall as Economic Rebound Tepid

Swedish retail sales unexpectedly fell in July as high unemployment in the export-reliant Nordic economy weighed on spending.

Sales fell 0.7 percent in July, Stockholm-based Statistics Sweden said today. The median estimate in a survey of six economists by Bloomberg was for a 0.1 percent gain. Sales (SWRSAMM) rose 2.1 percent in the year.

“The current low levels of resource utilization mean that recovery will be protracted, and so monetary policy will remain expansionary for several years to come,” the Swedish National Institute of Economic Research predicted yesterday.

Sweden’s central bank won’t start raising its main lending rate until the first quarter 2015 as the economy will grow just 1.1 percent and unemployment stay at an average 8 percent this year and only fall to 7.8 percent in 2014, NIER forecast.

The krona slid 0.2 percent to 8.6977 per euro as of 9:36 a.m. in Stockholm.

To contact the reporter on this story: Johan Carlstrom in Stockholm at jcarlstrom@bloomberg.net.

To contact the editor responsible for this story: Jonas Bergman in Oslo at jbergman@bloomberg.net

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