Swedish manufacturing PMI index rises in July

The Swedish manufacturing PMI index rose in July. The index rose to 57.4 from June’s 54.2. The outcome was better than anticipated. The sub-indices rose in the month. Order intake index rose to 57.6, while employment index rose to 56.6 from 54.5.

Order intake for export markets rose to the highest level so far this year. It rose to 58 from 50.8. Production index rose to 59.7 from 52. The sub-index for inventories rose too, and the order-to-inventories ratio continued to be low, suggesting that the PMI might fall in the months ahead.

The upturn in the PMI is encouraging and imply that export industry is gaining momentum after modest growth so far this year. But, the PMI is volatile, particularly during the summer months, and today’s reading should be taken with pinch of salt, stated Nordea Bank in a research report.