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Swedish PMI for June fell to 48.4 – showing gloomy economic outlook
Monday, 02 July 2012
The Swedish purchasers’ managers Index which determines the feeling in
the manufacturing sector fell in June to the zone which shows a gloomy
economic outlook.
The index fell below 50 which is the level where the average is taken.
Anything below 50 is considered as a depressed situation as such
reaching 48.4, it means that the industrial production in the country’s
industries is not good.
The fall has been blamed on the weak global economic situation which
makes the Swedish manufacturing industry to puts in a lower gear and
has been in line with what analysts had expected according to analysts
reports.
“PMI total fell by 0.6 index points in June and reached down to 48.4 -
the lowest level since last November. As our world economy weakens, the
Swedish industrial activity also follow,” writes Sweden banks which
published the PMI
The largest negative contribution to the decline was the drop in
orders. Likewise, production and supplier delivery times contributed
negatively, while stocks and employment gave positive contribution to
PMI in total.
“Enterprises' production plans have been turned down. The more subdued
order situation reduces optimism about the increasing activity of the
next six months. Corporate also reduces the staff requirements, and
instead cuts could be expected,” writes Swedbank.
Suppliers of raw and intermediate goods have seen their prices continue
to fall. The global commodity price drop and the stronger exchange rate
contribute to the development. The Riksbank also note that the
underlying price pressures in the industry are subdued.
The result from the PMI is obtained from a survey of purchasing
managers in big organisations in Sweden and in many cases,
organisations that carry out international trade.
By Scancomark.se Team
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