Sweden’s manufacturing PMI falls in November

Sweden’s manufacturing PMI dropped in November, but it continues to stay decent as order intake continues to be high. The manufacturing PMI fell to 57.3 in November from 58.4 in October. Consensus expectations were for 58.5. The main reason for the drop in PMI is the sub-index for inventories that rose full 11.5 points to 53.8, implying that the headline PMI would not rise further in the months ahead, noted Nordea Bank in a research report.

Most other sub-indices stayed at high levels, such as order intake and production, which came in at 59.3 and 60.5 respectively. The sub-index for intermediate goods prices increased to its highest level for several years, reflecting the recent rebound in commodity prices in the global market.

Overall, manufacturing production has dropped three straight quarters up to and including the third quarter. The PMI and other weak indicators point towards certain rebound in the fourth quarter and onwards, added Nordea Bank.