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.
Sub-indices for new orders and delivery times contributed to the monthly increase in the PMI, while inventory purchases, employment, and production weighed on the index. The index for suppliers’ raw material and input prices rose by 11.5 index points in April to 81.3 compared with March, the highest level since May 2022.
“Supply disruptions and rising inventories are driving up prices for raw materials and inputs across the board. These factors have quickly increased cost pressures in the manufacturing sector, which will ultimately fuel inflation and put more pressure on the Riksbank,” says Kennemar.
The Purchasing Managers Index (PMI) is an economic indicator for the Swedish economy compiled in collaboration between Swedbank and Silf for both the manufacturing industry and the service sector. The purpose of the PMI is to provide a quick assessment of current economic conditions. Each month, economic statistics are collected from purchasing managers who are part of a survey panel. An index reading above 50 indicates growth, while an index reading below 50 indicates a decline.
