The well-established economic indicator, the PMI Composite (Purchasing Managers Index) stood at 50.0 in March, up from 49.2 in February—the highest level since July 2022—meaning the indicator is once again in the growth zone. “It is encouraging that order intake continues to improve while production plans have become more expansive,” Swedbank notes in its analysis.
"This reinforces the picture of a brighter outlook for the Swedish industrial sector, even though conditions remain sluggish in several of Sweden's most important export markets, led by Germany," says Jörgen Kennemar, head of purchasing managers' index analysis at Swedbank.
The production index accounted for the largest positive contribution to the rise in the overall PMI, followed by new orders and employment, while delivery times and inventory purchases made a negative contribution. Purchasing managers at manufacturing companies have become more optimistic about their business plans. The production plans index rose to 59.3 in March. This is the highest level since February 2023 but remains below the index’s historical average (63.5). The index for suppliers’ raw material and input prices fell in March to 45.9 from 47.0 in February.
“Inflationary pressure in the industrial sector continues to ease, which should be good news for the Riksbank,” Kennemar notes.
