Sweden’s retail sales rose last month as consumers drive a recovery in the largest Nordic economy after the government promised tax cuts and the central bank pledged low interest into late next year.
Sales rose a monthly 0.3 percent after falling 0.7 percent the previous month, Stockholm-based Statistics Sweden said today. The median estimate in a survey of six economists by Bloomberg was for sales to grow 0.4 percent. Annual retail sales rose 2.4 percent.
“An improving labor market and promises of a new round of tax cuts in the 2014 budget continue to suggest an acceleration in private consumption in Sweden,” said Elisabet Kopelman, an analyst at SEB AB in Stockholm, in a note before the report.
The government this month said it will support the recovery by cutting income taxes for a fifth time since coming to power in 2006. Sweden’s central bank predicted it will keep rates unchanged at the lowest level since 2010 for another year to support a recovery as demand from abroad picks up.
The euro-area emerged from a record-long recession last quarter, expanding for the first time since 2011. Sweden sells about half its output abroad, of which about 70 percent goes to Europe.