The Purchasing Managers' Index (PMI) for Swedish manufacturing stood at 56.0 in January, compared with 55.4 in December. This marks the seventh consecutive month that the index has remained above its historical average of 54.3. Swedish industry also continues to post significantly higher index figures than, for example, the United States and the Eurozone.
– Swedish industry continues to be in an expansionary phase, with index levels that are significantly higher than in the U.S. and the eurozone. Geopolitical concerns and a stronger krona have not prevented the industry from growing and point to a robust industrial economy, says Jörgen Kennemar, head of purchasing managers’ index analysis at Swedbank.
The rise in January was driven by the sub-indices for new orders and employment, while inventory purchases, production, and delivery times weighed on the overall index. Production plans rose in January and reached their highest level in three months, which is a strongly positive signal. The index for suppliers’ raw material and input prices has risen for eight consecutive months, reaching 58.4 in January, up from 57.4 in December. This is the first time in over three years that the index has exceeded its historical average of 57.6.
– Price pressure from the producer side has intensified, while global commodity prices have begun to rise, particularly for industrial metals, with copper leading the way. “This is a trend that means we cannot ignore the risks of inflation now that the economy is improving, even though a strong krona has a dampening effect,” Kennemar notes.
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.
