Sweden’s manufacturing PMI in May remained at 54, consistent with consensus expectations of 53.8. Thus the PMI continues to be around the interval between 50 and 56. It has remained in this interval for the last three years. A gradual rebound has been witnessed in Sweden’s manufacturing sector. The sector is expected to continue recovering at a slower rate, said Nordea Bank in a research report. Meanwhile, growth in the broader Swedish economy is likely to ease considerably later in 2016, added Nordea Bank.
Sweden’s May sub-indices of the PMI went in various directions. The overall order intakes increased slightly to 56.3 from April’s 56, whereas export order intakes declined considerably to 51.7 in May from 56 in April. Meanwhile, production’s sub-index rose to 58.1 from 56.9, whereas the employment index dropped to 49.2, the lowest reading since April 2014. Inventories indicator dropped from 49.3 in April to 47.2 in May, whereas production plans six months ahead fell to 57.9 from 64.9.
