Swedish PMI fell to 51.3 in July but remains in the growth region as stabilization of the industrial sector remains
Thursday, 01 August 2013
Swedish Purchaser Manager Index, (PMI) fell to 51.3 in July from 53.5 in June, down 2.2 index points. This however, remains in the growth zone, which has a lower limit of 50 basis points and means that the Swedish industrial sector remains buoyant.
However, the fall was worse than expected, according to analyst expectations, which expected the PMI fall to hit 53.4 in July.
PMI has been noted to remain in the growth zone for the last six months, which shows that the Swedish industrial sector has stabilized in the spring and early summer. In the areas of decline, it was broad, with four of the five sub-indices making a negative contribution to PMI according to figures from Swedbank and logistic organisation Silf.
Orders accounted for the largest negative contribution to the
decline in the PMI.The order intake slowed from both external and
domestic market, but despite decline in July the index for new orders
was over the 50 mark. The lower orders also gave a negative impression
in the companies' order books.
The statistics suggest that purchasing managers in the industrial sector have become less optimistic about the Swedish economy.
Companies' production plans fell to 55.6 from 60.9 in June. The sub-index for employment was 44.9 in July, showing that manufacturing firms are still decreasing workforce while the index of output is well above the 50 level. This means that the productivity of the industrial sector continues to grow.
Upward price pressures at the producer level is still low even though the index rose to 44.8 in July from 42.2 in June. A subdued demand and increasing competition limits likely prices of the suppliers of raw materials and input.