Swedish PMI fell to 52.0 in October still in growth zone - stable industrial activities
Friday, 01 November 2013
Swedish purchaser’s manager Index (PMI) for the Swedish industrial sector fell by 4.0 index points to 52.0 in October from 56.0 months before. The corresponding month last year, purchasing managers index 43.1.
According to analyst survey, the forecast was a PMI expected to reach 54.8 in October.
The index is a compilation of about 200 purchasing managers' assessment of their economic developments and presented by the Swedish bank, Swedbank and Silf the organization representing the purchasing and logistics sector.
All constituent sub-indices except the index for supplier delivery times, made a negative contribution to the overall PMI. The sub-index for new orders accounted for the largest negative contribution. The weaker order intake was however a limited footprint in the index for the stock of orders. Both PMI totals, that is, all indices except the index for employment, are still at the growth zone.
The sub-index on employment fell back below 50 points thereby indicating weak employment growth in industrial sector. The sub-index for delivery times were, basically unchanged, and stayed in the growth zone for the third month in a row. Index of stocks rose by 2 index points, thus contributing negatively to overall PMI.
Companies' production plans fell to 58.1 from 60.8 in September. The sub-index for both output and new orders remained above the 50 mark since February while the sub-index for the stock of orders recorded in the growth zone are likely to contribute to the companies as they’ll likely see a rise in production in the next six months.
The index of production is noted above the 50 level mark throughout 2013, together with a decline in employment growth indicates that the productivity of the industry has improved.
Upward price pressures at the producer level is still low and the index fell by 0.7 index points to 46.9.
The krona dropped after the announcement, initially by about Skr0.4 to Skr8.83 against the euro.
New research assessment from the Swedish Institute for Economic Research however, showed that the indicator for the manufacturing sector rebounded to 101.2 in October from a temporary decline to 94.5 in September (from 100.4 in August).
The indicator for the manufacturing sector was therefore once again slightly above the historical average. The institute stated that orders received from the domestic market had increased in recent months, while export demand had decreased slightly. The production volume had increased and plans indicated a stronger growth in the coming months.
By Scancomark.com Team