By Charles Duxbury
STOCKHOLM--Sweden's economy returned to growth in the second
quarter, boosted by rising household consumption and exports, but
the upswing was smaller than expected and the Swedish currency
fell.
Sweden's statistics agency said Wednesday that gross domestic
increased 0.2% in the three months to the end of June from the
first quarter, which was less than the 0.6% expected by analysts
polled by The Wall Street Journal. The Swedish krona fell against
the euro, which rose to 9.24 kronor from 9.19 kronor after the data
was published.
The numbers suggest the Swedish economy remains in a slow
recovery with domestic consumption continuing to offset muted
demand for Swedish goods overseas.
Statistics Sweden said the economy grew 1.9% in annual terms
with household consumption up 2.9% and exports rising 1.7%.
Forward looking indicators such as the purchasing managers'
index and confidence surveys are also pointing to a steady
improvement in the economic outlook.
That outlook will likely strengthen the central bank's resolve
to keep interest rates low well into next year as it seeks to push
inflation up toward a 2% target.
The bank cut its main rate to a record low 0.25% this month and
without the support of a stronger economic upswing the bank will
likely judge that looser monetary policy remains appropriate.
Economic output declined 0.1% in the first quarter.
-Write to Charles Duxbury at charles.duxbury@wsj.com