The Business Tendency Survey’s Purchasing Managers’ Index (PMI) for manufacturing rose to 52.9 in January (52.4 in December) and is thus in the growth zone for the sixth consecutive month, though below the index’s historical average of 54.3.
– Swedish industry continued to show higher levels of activity than industries in the eurozone countries, while production plans increased. “But if the sluggish global economy persists and the threat of higher tariffs becomes a reality, it could pose a challenge for Swedish industry,” says Jörgen Kennemar, head of purchasing managers’ index analysis at Swedbank.
New orders accounted for the largest positive contribution to the rise in the PMI in January, followed by employment, while delivery times, production, and inventories made negative contributions to the PMI. Manufacturers’ production plans reached a two-year high in January, coming in at 65.2, and do not appear to have been affected by the threat of higher tariffs. The index for suppliers’ raw material and input prices fell to 54.3 in January from 55.7 in December but has increased by 8.7 index points compared with January of last year.
“Price pressure in the industry is increasing, but at a more moderate pace, as the global rise in commodity prices is being held in check by the sluggish global economy and fewer disruptions in supply chains,” Kennemar notes.
