Swedish manufacturing PMI falls in June, likely to continue falling

Swedish manufacturing PMI dropped to its lowest level since August 2016 in June, possibly because of increased trade tensions. The manufacturing PMI remained at 54.2 in June from May’s 55.8. The sub-indices for order intakes, production and employment all deteriorated.

The order intakes for the export market fell to the lowest level in nearly two years. Yet production plans actually rebounded slightly, noted ANZ in a research report.

The falling sentiment should come as no surprise as there are indications of decelerating growth among Swedish trading partners. Moreover, recent concerns related to trade barriers have probably been a drag on sentiment.

“We expect the PMI to continue down, indicating downside risks to forecasts for exports and GDP”, noted Nordea Bank in a research report.

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