Swedish manufacturing PMI index falls in December, but remains at healthy levels

The Swedish manufacturing PMI dropped in the month of December but continues to remain at sound levels. The manufacturing PMI dropped from 63.3 to 60.4. The consensus expectations were for 63. However, it continues to be within the past year’s range between 59 and 64, except for the outlier in August at 54.7. Thus, the PMI continues to show strong growth in the manufacturing sector, stated Nordea Bank in a research report.

Most sub-indices dropped but in most cases the levels are healthy at around 60. The index for prices rose to 71.9, possibly reflecting the increase in commodity prices in the global market. The index for order intake dropped from 64.9 to 62.6. Export orders index dropped slightly from 60.9 to 59.2, while the production index fell from 64.8 to 62.3. The employment index fell sharply from 62.5 to 56, whereas the inventories index dropped from 53.1 to 54. Production plans six months ahead dropped marginally from 67.9 to 67.4.

The report for PMI is overall good as it hints at strong growth in the manufacturing industry. But, hard data have been less impressive, noted Nordea Bank.

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