Swedish manufacturing PMI rises in November, manufacturing industry likely to gain momentum

Swedish manufacturing PMI rose in November in contrast to expectations of a fall. The PMO index rose to 56.7 from October’s 55, as compared with consensus expectations of a decline to 54.5.

Delving into details, except for the employment index, all the sub-indices rose. The order-to-inventories ratio rose in the month, but still implies that the headline PMI will fall going forward. The lower activity among trading partners also indicates towards a lower PMI.

The rise in PMI is consistent with the improved confidence according to the NIER’s Business Tendency Survey. Overall, manufacturing production and exports have levelled out in 2018. Today’s PMI report is good news and provides some hope that the manufacturing industry might gain some momentum, noted Nordea Bank.

“But the PMI is very volatile and there are still some worrying signs, which means that question marks remains for the growth outlook”, added Nordea Bank.