(Bloomberg) — Sweden’s economy held up better than expected in November, indicating that the largest Nordic country could have returned to growth in the last three months of 2023.
A flash estimate from Statistics Sweden showed gross domestic product increasing by 0.2% from the previous month, while economists surveyed by Bloomberg had estimated an 0.6% contraction.
The reading comes after the indicator for October showed growth clearly outpacing expectations, despite the backdrop of an economy that has been hit hard by interest-rate increases and rising prices. That’s squeezed consumers, hurting spending and construction.
Danske Bank A/S’s chief economist for Sweden, Michael Grahn, said the latest data indicates that output expanded in the fourth quarter, following two consecutive quarters of contraction.
That development would indicate a more positive outcome than the 0.4% contraction that Sweden’s Riksbank projected in late November, when it decided to keep its benchmark rate unchanged, citing slowing inflation and a weakening economy.
The central bank, as well as the European Commission and several other banks, still expect Sweden to undergo two consecutive years of contraction — last year and this. The number of bankruptcies has risen to the highest since the 1990s recession.
Other data published Wednesday by the statistics agency showed that retail sales as well as household consumption declined from a month earlier, while orders to the country’s manufacturing sector returned to growth.
While the Riksbank has indicated that it will keep its policy rate at 4% through 2024, most economists believe it will start reducing borrowing costs by early summer, and economists at Swedbank AB said they don’t expect the latest batch of data to shift that course.
“As the underlying data indicates weak domestic demand, we do not think the Riksbank will interpret the outcome as a sign of a strengthening economy,” Pernilla Johansson and Maria Wallin Fredholm said in a note. “We stick to our view of a first rate cut in June.”
–With assistance from Joel Rinneby.
(Adds chart, details and economist comments from fifth paragraph.)
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
