Market News
Large fall in the Swedish industrial production as PMI falls
Monday, 03 September 2012
The Swedish purchasing managers index for the industrial sector was 45.1 in August, compared with 50.6 a months before. That level is the lowest since the spring of 2009 and signifies a fall in industrial production.
"It is a notable drop in industrial activity compared with earlier in the year when the index fluctuated around the 50 mark," writes Swedbank and Silf, which collect and publish the figure, in a press release.
The index is based on interviews with about 200 purchasing managers in the private sector. An index above 50 is considered to indicate growth and below show a fall.
All sub-indices fell in August. The highest decrease was for orders.
Employment fell to a new low for the year as a result of companies' adaptation of their workforce to the weaker demand.
"An uncertain global economic conditions and shrinking order books contributed to the prevalence of the industrial companies to expect a decreased or unchanged production for the next six months," writes Swedbank and Silf.
Analysts see the figures as slight figure, especially in the orders, which are forward-looking. It shows that Swedish companies are beginning to feel the slowdown a bit more and are affected by the situation in the rest of Europe.
They view that Sweden has come from a period where its PMI has fared surprisingly well, while those such as the German index fell.
There is however the view that there should be less panic and cautious reaction to the figure for it moves a lot between different months. This suggests that exports and production will fall in the next quarter.
The market reacted strongly to the low purchasing managers' index. The Swedish Krona fell Skr 0.5 to the dollar, while the Swedish bond yields fell - particularly those with shorter maturities. The interest rate on a two-year government bond fell from 0.86 to 0.80 percent.
Stockholm Stock Exchange, fared better and so far is performing in line with the rest of the leading markets worldwide.
by Scancomark.com
Large fall in the Swedish industrial production as PMI falls
Monday, 03 September 2012The Swedish purchasing managers index for the industrial sector was 45.1 in August, compared with 50.6 a months before. That level is the lowest since the spring of 2009 and signifies a fall in industrial production.
"It is a notable drop in industrial activity compared with earlier in the year when the index fluctuated around the 50 mark," writes Swedbank and Silf, which collect and publish the figure, in a press release.
The index is based on interviews with about 200 purchasing managers in the private sector. An index above 50 is considered to indicate growth and below show a fall.
All sub-indices fell in August. The highest decrease was for orders.
Employment fell to a new low for the year as a result of companies' adaptation of their workforce to the weaker demand."An uncertain global economic conditions and shrinking order books contributed to the prevalence of the industrial companies to expect a decreased or unchanged production for the next six months," writes Swedbank and Silf.
Analysts see the figures as slight figure, especially in the orders, which are forward-looking. It shows that Swedish companies are beginning to feel the slowdown a bit more and are affected by the situation in the rest of Europe.
They view that Sweden has come from a period where its PMI has fared surprisingly well, while those such as the German index fell.
There is however the view that there should be less panic and cautious reaction to the figure for it moves a lot between different months. This suggests that exports and production will fall in the next quarter.
The market reacted strongly to the low purchasing managers' index. The Swedish Krona fell Skr 0.5 to the dollar, while the Swedish bond yields fell - particularly those with shorter maturities. The interest rate on a two-year government bond fell from 0.86 to 0.80 percent.
Stockholm Stock Exchange, fared better and so far is performing in line with the rest of the leading markets worldwide.
by Scancomark.com
Scancomark.com
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