Swedish households are spending again, boosting retail sales, HUI says

The fact that households have loosened their spending a bit is noticeable both in grocery retail and in the non-durable goods sector.

"After several years of deferred purchases, households are once again daring to buy furniture, appliances and home furnishings. The upturn is broader and stronger than expected, giving the retail sector a strong sales trend during the year," writes the Swedish Trade Research Institute (HUI) in its report.

However, a rise in the key interest rate later this autumn could test consumer spending, according to HUI.

"In the coming quarters, it will be important to monitor whether rising real wages and reduced precautionary savings outweigh higher interest costs."