Sweden's manufacturing activity experienced its first contraction in six months this July, according to data from Swedbank and the logistics association SILF revealed on Thursday.
The purchasing managers' index (PMI) for the manufacturing sector fell to 49.2 in July from 53.0 in June, with any reading below 50 signaling contraction.
"Nevertheless, this decline should be interpreted cautiously, as industrial activity typically slows down in July due to holidays and planned maintenance," noted Jorgen Kennemar, an analyst at Swedbank.
The order intake sub-index reached a nine-month low in July, leading the most significant negative impact on the overall PMI, followed by decreases in production and delivery times.
On the pricing side, cost pressures escalated in July, as the index for suppliers' raw and input goods prices increased to 58.3 from 54.8 in June.
