Swedish Manufacturing Sector Contracts In September


Sweden’s manufacturing activity contracted for the first time in more than two years in September amid a sharp fall in new orders, survey data from Swedbank and the logistics association SILF showed on Monday.

The purchasing managers’ index for the manufacturing sector fell to 49.2 in September from 50.2 in August.

Any score below 50 indicates contraction, while a reading above suggests growth in the manufacturing sector.

Moreover, the PMI remained below the 50-mark for the first time since July 2020.

“The industrial economy has weakened further during the autumn in the wake of a weaker global economy, which has led to a clear decline in incoming orders and in companies’ production plans,” Swedbank analyst Jorgen Kennemar said.

The order intake sub-index accounted for the largest negative contribution to the decline in the PMI total, followed by delivery times and production, while employment and inventories contributed positively to the overall index.

The raw and input price index rose by 10 points to 71.7 in September. Further, this was the highest level since June after gradually falling since spring.

There are increasing signs of reduced demand pressure in industry, so the rise in September may be temporary or related to the weakening of the krone and higher energy prices, Kennemar said.

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