Sweden’s service sector production grew below expectations in March following a sharp fall in February. Meanwhile, manufacturing sector production came in above projections. Order intake for manufacturing also rose in March; however, it is still below the level it was during the end of 2015. Admittedly, production in the total business sector dropped in the start of 2016. The figures indicate a noticeable slowdown in the economic growth for the first quarter.
Manufacturing production rose 5.5% y/y, as compared with consensus expectations of 3.4%. On a monthly basis, it expanded 1.4%, as compared with the consensus forecast of 0.3%. Order intake grew 2.1% y/y and 1.7% m/m in March. Meanwhile, private services production rose 1.2% y/y and 0.9% m/m in March.
Statistics Sweden depends more on consumption figures, foreign trade etc when calculating GDP, noted Nordea Bank. Hence, it is too soon to come to any conclusions regarding Q1 growth, added Nordea Bank. Moreover, work grew rapidly in the first quarter, while employment increased 0.3%. This implies that the economy continued to grow in the start of 2016, according to Nordea Bank.
