Sweden's manufacturing sector continued to contract in May and at the fastest pace in three years as the majority of components made negative contributions, survey data from Swedbank and the logistics association SILF showed on Thursday.
The purchasing managers' index for the manufacturing sector dropped notably to 40.6 in May from 44.9 in April. Any reading below 50 indicates contraction.
Thus, the Swedish manufacturing sector remained in deterioration for the tenth successive month.
"It is a surprisingly large and broad decline and shows that the industrial economy continues to weaken, which we also see in the rest of the world and not least in the euro countries," Swedbank analyst Jorgen Kennemar said.
The sub index for new orders accounted for the largest negative contribution, followed by employment, production and delivery times, while inventories made a positive contribution.
The index measuring production plans weakened to 47.8 in May, the lowest level since the pandemic year of 2020.
The index for raw and input prices fell to 36.6 in May from 40.7 in April.
A weaker industrial economy and better functioning supply chains are causing a rapid decline in price pressure from suppliers, the survey said.
