Sweden's manufacturing sector experienced a modest recovery in August following a contraction in the previous month, according to a survey conducted by Swedbank and the logistics association SILF, released on Monday.
The purchasing managers' index (PMI) for manufacturing rose to 52.7 in August from 49.2 in July, signaling growth as any reading above 50 indicates expansion.
Despite this improvement, the survey highlighted that the index has mostly stagnated over the past three summer months—a period typically characterized by volatility due to holidays and scheduled maintenance. This stagnation follows a rise observed in the spring.
"This suggests that the recovery in the Swedish manufacturing industry has lost momentum amid a weakening global growth outlook," noted Jorgen Kennemar, an analyst at Swedbank.
The most significant boost to the PMI came from the order entry sub-index, with production and delivery times also contributing positively. On the other hand, the employment index showed a slight decrease but remained in the growth zone.
Price pressures eased significantly in August as the raw material and input supplier price index fell to 51.2 from 56.7 in July, marking the lowest level in five months. This slowdown in cost price inflation was bolstered by lower global raw material prices and the recent appreciation of the Swedish krona.
