The Purchasing Managers' Index (PMI) for Swedish manufacturing fell in July to 55.8 from 58.0 in June. This is the first decline in five months, although the index remains above its historical average of 54.3 for the thirteenth consecutive month.
– Swedish industry continues to show positive growth, even though the pace slowed somewhat after a strong second quarter. Order intake, production, and employment continue to grow, while cost pressures have eased, says Jörgen Kennemar, head of the Purchasing Managers’ Index analysis at Swedbank.
All sub-indices dragged down the PMI, with the largest negative contribution coming from production, followed by inventory purchases, new orders, delivery times, and employment. All sub-indices remain above their historical averages. The index for suppliers’ raw material and input prices fell in July to 67.3 from 80.4 in June. This is the lowest level in five months.
– Cost pressures in the manufacturing sector fell significantly in July following the sharp rise this spring, which eases concerns about rising inflationary pressures. “However, continued uncertainty surrounding developments in the Middle East—with the risk of new disruptions in supply chains—could quickly drive up input prices again,” 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 rapid assessment of 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 indicates a decline.
