Swedish Economy Contracts For 1st Time Since 2013
The Swedish economy shrank 0.2 percent on quarter in the three months to September 2018, following a downwardly revised 0.5 percent expansion in the previous period and below market expectations of a 0.3 percent growth. It was the first contraction since the second quarter of 2013, as household consumption declined.
11/29/2018 9:58:25 AM
Household consumption fell 1.0 percent in the third quarter of 2018, after rising 0.5 percent in the second quarter of the year and government spending showed no growth (vs 0.5 percent in Q2). Changes in inventories reduced 0.4 percentage points to the growth. Meantime, net trade contributed positively to the GDP, as exports rose 0.3 percent and imports dropped 0.6 percent. In addition, fixed investment increased 0.8 percent, rebounding from a 0.9 percent decline in the prior period.
On the production side, market production of goods and services dropped by 0.2 percent. Production of goods fell by 1.1 percent (vs -0.4 percent in Q2) and service-producing industries advanced by 0.3 percent (vs 1.0 percent). Employment measured as the total number of hours worked went up by 0.2 percent, and the total number of persons employed rose by 0.3 percent.
Year-on-year, the economy advanced 1.6 percent, slowing from an upwardly revised 2.7 percent expansion in the prior period and missing market consensus of a 2.3 percent growth.