The Purchasing Managers' Index (PMI) for Swedish manufacturing rose for the fourth consecutive month, reaching 54.2 in April compared with 53.8 in March. The index is now at levels not seen since the spring of 2022 and is marginally below its historical average (54.3).
– Increased uncertainty surrounding global trade has not hindered the recovery in Swedish industry. “It now depends on what happens with the 90-day U.S. tariff reprieve and whether any trade agreements are reached; otherwise, there is a risk of a setback,” says Jörgen Kennemar, head of purchasing managers’ index analysis at Swedbank.
The sub-index for new orders accounted for the largest positive contribution to the increase in the PMI, followed by delivery times, while the sub-index for production weighed on the index. Manufacturing firms’ production plans were more expansionary in April, and the index rose to 65.1, the highest level since May 2022. The index for suppliers’ raw material and input prices fell in April to a six-month low, registering at 50.9 from 55.6 in March.
“Falling global commodity prices and a stronger krona are contributing to lower price pressures in the manufacturing sector, which should be good news ahead of the Riksbank’s interest rate decision in May,” says Kennemar.
