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Swedish PMI fell in May - Slowing manufacturing activity as orders fail
Friday, 01 June 2012
The purchasing manager’s index for the Swedish industrial sector fell
to 49.0 in May from 50.2 months before. The corresponding month last
year, the purchasing managers index 56.1.
Analysts had expected the purchasing managers' index to have fallen to 49.5 in May.
According to Swedbank and Silf, PMI fall reinforces the image of the
recovery of the Swedish industrial economy which could be clearly
described as “stagnated.”
Sub-indices for new orders accounted for the largest negative
contribution to the PMI fall, followed by supplier delivery times,
which clearly indicates that the demand situation for Swedish industry
has become less favourable during the past month.
Layoffs in the industrial sector became more common in May, while the
sub-index on employment reached a new low point for this year. The
uncertain economic situation has meant that industrial companies'
production plans for the next six months is turned down, although there
still exists a preponderance of companies planning to increase or
maintain production volume.
Index of suppliers of raw and intermediate goods prices fell by as much
as 6.4 index points to 45.8 in May from 52.2 in April, as a result of
lower global commodity prices and weaker economic activity. This means
that the price pressure from producer has slowed down.
The index is a compilation of about 200 purchasing managers' assessment
of the economic development and presented by Swedbank and Silf, the
organization of purchasing and logistics.
By Scancomark.se Team
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