Thursday, July 28, 2016

Repayment requirements could hamper purchasing power – Västerbotten Courier

Economy. Retail sales and consumer durables increases. But the purchasing power may be hampered by the amortization requirement on mortgages introduced, according to HUI Research.

Facts

retail sales rose in June by 3.2 percent compared with the same month last year.

Sales of retail trade grew by 3.3 percent in the first half of this year and for consumer durables by 5.2 per cent, compared with the same period last year.

the preliminary sales figure for retail sales in June, landed at 66 billion.

Source: Statistics Sweden and HUI Research

– If people have to repay more so, it may mean that they have less money left in your wallet to spend on goods, mainly in consumer durables, says Andreas Svensson at HUI.

He also believes that the amortization requirement can lead to lock-in effect, that people no longer move as before, and also it can lead to the purchasing power is inhibited.

– It is important for merchants to move people. When people are moving and changing residence make the reinvestment of furniture or electronics. They buy, for example, new televisions.

According to Andreas Svensson consumer durables inside a boom.

– It has been a surge in the first half of this year because households remain good purchasing power.

Construction retail sales increased

sales of retail trade grew by 3.3 percent in the first half of this year and for consumer durables by 5.2 percent, compared with the same period the year before. Above all, sales have increased in the construction trade and the furniture trade.

– The building trade has delivered good growth, although there have been changes in the tax deduction at the end of the year. Many had perhaps planned to replace the kitchen or renovating the bathroom and even if the tax deduction changed wants to implement his plans, he said.

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