Sweden's manufacturing sector demonstrated growth for the fourth consecutive month in June, although the pace has decelerated compared to May, as per survey data released on Monday by Swedbank and the logistics association SILF.
The Purchasing Managers' Index (PMI) for the manufacturing sector decreased to 53.6 in June from 54.1 in May. Nonetheless, any reading above 50 signifies expansion.
"Despite the slowdown in June, the recovery in the Swedish industry is progressing more rapidly than in the eurozone," stated Swedbank analyst Jorgen Kennemar. "Moreover, production plans have become more ambitious, which could ultimately lead to job creation within Swedish industry."
Among the PMI components, the order intake sub-index was the most significant contributor to the overall decline, followed by inventory purchases and production. However, employment and delivery times exhibited positive contributions.
Remarkably, four out of the five PMI components are currently in the growth zone, suggesting a broader recovery across the industry.
On the pricing front, the index for suppliers' raw and input goods prices decreased to 54.1 from 54.9 in May. This trend points to a slight easing in cost pressures, influenced by a stronger krona and modest demand pressure, which have collectively exerted a dampening effect on prices.
