(Bloomberg) -- Sweden’s economic output expanded less than expected in May, as data highlights that households in the Nordic region’s largest economy may need additional monetary policy easing for consumption to pick up.
Gross domestic product increased by 0.1% from the previous month, according to an initial estimate published Friday by Statistics Sweden. That was a weaker outcome than expected by economists polled by Bloomberg, who had estimated an 0.4% expansion.
The data comes as Sweden’s central bank has started a cycle of rate cuts that it expects will take borrowing cuts one percentage point lower by the second half of next year. However, weak data for April and May suggests that the monetary policy shift hasn’t yet reinvigorated the economy in a meaningful way.
Following an expansion in the first three months of the year, economic activity has slowed down, and while production in the business sector rose by 0.6% in May, household consumption declined by 0.4% on month, according to separate releases from Statistics Sweden.
--With assistance from Joel Rinneby.
©2024 Bloomberg L.P.
Sweden’s Economy Expands Less Than Forecast as Spending Slows - BNN Bloomberg
Read More
No comments:
Post a Comment