Sweden’s manufacturing sector accelerates further in January

The Swedish manufacturing sector began 2017 on a positive note. The overall PMI indicator rose higher in January and reached the highest level in almost seven years. The purchasing managers index rose to 62 from December’s 60.1. Consensus expectations were for 60.

Overall, the report was strong, where the sub-indices for order-intakes and employment rose further. The index for order intake rose to 61.9 in January from 61.3 in December. The index for employment rose from 57.5 in December to 61.1 in January, which is the highest level since 1995. This augurs well for employment development in the sector.

Looking at other sub-indices, export orders index dropped a tad to 57.6 from 57.9, whereas production index rose to 68 in January from 65 in December. Production plans for six months ahead also rose in the month to 68.4 from 68. However, inventories contracted in the month. The index dropped from 51 in December to 49 in January.

The data released today, along with the earlier released NIER survey, indicate towards a rebound in the manufacturing sector, noted Nordea Bank in a research report.