The Purchasing Managers' Index (PMI) for Swedish manufacturing rose to 57.2 in April from 56.2 in March. This is the highest level since spring 2022 and marks the tenth consecutive month above the historical average of 54.3.
– Swedish industry continues to show robust growth, despite an uncertain global environment. Disruptions in supply chains and rising raw material prices caused by developments in the Middle East are challenging but are not yet reflected in companies’ production plans, says Jörgen Kennemar, head of the Purchasing Managers’ Index analysis at Swedbank.
The sub-indices for new orders and delivery times contributed to the monthly increase in the PMI, while inventory purchases, employment, and production dragged the index down. The index for suppliers’ raw material and input prices rose in April by 11.5 index points to 81.3 compared with March, which is the highest level since May 2022.
“Supply disruptions and rising inventories are driving up prices for raw materials and inputs across the board. In a short period of time, these have increased cost pressures in the manufacturing sector, which in the long run will fuel inflation and increase pressure on the Riksbank,” says Kennemar.
The Purchasing Managers Index (PMI) is an economic indicator for the Swedish economy conducted in collaboration between Swedbank and Silf for both the manufacturing industry and the service sector. The goal of the PMI is to quickly gauge current economic conditions. Each month, economic data is collected from purchasing managers who are part of a survey panel. An index reading above 50 indicates growth, while a reading below 50 signals a decline.
