Swedish manufacturing PMI drops more than expected in August, recovery in manufacturing to continue

The optimism amongst Swedish manufacturers eased considerably in August. The purchasing managers’ index dropped more than expected in August. The PMI came in at 54.7, falling from July’s print of 60.3. All sub-indices added to the decline. Order intake dropped from 61.5 to 53.9, which is the lowest level since August 2016.

Export orders dropped from 57.5 to 52.1, while production index fell from 64.4 from 53.5. Meanwhile, the employment sub index fell to 55.9 from 57.6. Inventories index dropped to 51.9 from 51.2. The index for production plans 6 months ahead dropped to 61.9 from 68.5

With today’s decline in the PMI, the previous gap between hard data and the indicator is greatly closed. The more comprehensive NIER business survey still implies a much higher growth in the manufacturing sector, noted Nordea Bank in a research report. Overall, the rebound in the manufacturing industry is expected to continue, although today’s figures bring down the expectations slightly, added Nordea Bank.

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