Norway: Lower unemployment – Nordea

Erik Johannes Bruce, analyst at Nordea Markets, points out that Norway’s unemployment fell in August, after moving about sideways earlier this summer, supporting a Norges Bank hike in September.

Key Quotes

“Registered unemployment fell – seasonally adjusted – by 500 persons in August, in line with our expectations. Previously, unemployment moved about sideways during the summer. However, the summer months were likely affected by temporary noise. The reduction in August has us believe that unemployment can continue to fall further before leveling out.”

“The current level of unemployment is somewhat to the upside of Norges Bank`s forecast. However, we believe that Norges Bank will conclude like us and suspect that the sideways movement during the summer was short-lived. Hence, the somewhat higher level of unemployment should not prevent Norges Bank to hike at the September meeting.”