Sweden’s business sector production grows rapidly in third quarter

Swedish production in business sector grew rapidly in the third quarter. Production in the total business sector rose 1.4 percent sequentially and 6.2 percent year-on-year in the third quarter. The September quarter print was stronger than anticipated and indicates towards upside risks in the Riksbank’s forecast of 1 percent sequentially and 3.4 percent year-on-year.

The solid growth is encouraging for the bank; however it does not change much for the monetary policy outlook as focus in on the inflation challenge, noted Nordea Bank in a research report.

Figures for the total business sector came in at 0.5 percent sequentially and 5.2 percent year-on-year. Production in the services sector was higher than forecast at 5.9 percent year-on-year. Production in the manufacturing industry was consistent with expectations while construction was subdued at 5.9 percent year-on-year.

Order intake in the manufacturing industry rebounded noticeably in September, implying that the upturn will continue in the months ahead.

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