Swedish manufacturing industry growth eases in December, PMI index falls to 52

The Swedish PMI report implies that the manufacturing industry ended 2018 on a soft note, said Nordea Bank in a research report. The manufacturing PMI index dropped to 52 in December from November’s 55.4. The sub-indices also dropped in the month. The sub-indices for prices continued to fall in line with the decline in metal prices on the world market, reflecting global deceleration and low price pressures.

The indices for order intake and export orders dropped to 53.3 and 51.8 from 55.7 and 53.3, respectively. The production index dropped from 59.6 to 53 in December. Meanwhile, the indices for inventories and employment fell to 54 and 52.1 from 55.3 and 53.8, respectively.

Overall, there is a deceleration in the manufacturing industry. The only positive news are that the orders-to-inventory ratio as well as the OECD leading indicator do not imply any further deceleration in the PMI in the near term, added Nordea Bank.