SWEDEN
The increase in Swedish November economic activity was broad based (a reminder that monthly GDP was 1.4% M/M vs a three-analyst consensus of 0.4% and -0.4% prior). Statistics Sweden cites “growth in both goods- and service producing industries as well as in general government production”. However, on a 3m/3m basis, the GDP indicator fell 0.7% in November (vs -0.2% prior). As such, overall economic momentum remains on the soft side, and more data is required to clearly signal that a recovery is underway.
- We re-iterate that caution is needed when interpreting this data, which is often prone to revisions. As such, we look for signals from next week’s Riksbank speakers to gauge whether a January rate cut is a likely scenario.
- Household consumption grew 1.1% M/M (vs a four tenth upwardly revised 0.1% prior). On a 3m/3m basis, consumption grew 1.1% (vs 1.2% prior). Retail trade of clothing and footwear and post and telecommunications saw the largest 3m/3m accelerations in November.
- Private sector production rose 1.4% M/M (vs a two tenth upwardly revised -0.6% prior). The production value in industry, services and construction all increased in November. Industrial orders were also firm.
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