Sweden GDP Falls Less Than Estimated, Retail Sales Fall At Slower Rate

(RTTNews) - Sweden's economy contracted less than initially estimated in the second quarter, while retail sales continued to decline in July amid lower demand for consumables and durables, figures from Statistics Sweden showed on Tuesday.

Gross domestic product dropped 0.8 percent sequentially in the June quarter, reversing a revised 0.4 percent rise in the March quarter. 

According to the initial estimate, GDP logged a 1.5 percent contraction in the second quarter.

The downward trend in the second quarter was driven by negative contribution from household consumption and changes in inventories.

Household final consumption dropped 0.2 percent over the quarter and change in inventories showed a decline of 0.4 percent.

Meanwhile, general government consumption rose 0.5 percent and gross fixed capital formation showed no variations from the previous quarter. 

On an annual basis, the Swedish economy contracted 1.0 percent in the second quarter, reversing a 1.0 percent growth in the preceding three-month period. The decline seen in the flash report was 2.4 percent.

In a separate report, the statistical office showed that retail sales declined at a slower rate of 2.1 percent annually in July versus a 4.4 percent fall in June. Sales have been falling since May last year.

On a monthly basis, retail sales recovered 1.0 percent in July, after a 0.2 percent drop in the prior month. 

Retail sales of consumables declined 0.6 percent from a month ago, while sales of durables rose 2.7 percent.

Another report from the statistical office revealed that the trade balance of the country turned to a surplus of SEK 4.6 billion in July from a deficit of SEK 3.8 billion in the corresponding month last year.

The value of exports decreased 5.0 percent year-over-year in July, while imports grew at a faster pace of 10.0 percent.