Swedish Industrial Sector Shows Continued Growth Despite Slowdown
May PMI data indicates continued growth in Sweden's industrial sector but with a decrease in momentum.
Key Points
- • PMI dropped from 54.2 in April to 53.6 in May, indicating slower growth.
- • It's the tenth consecutive month above the 50 threshold, signaling ongoing expansion.
- • Jörgen Kennemar noted a decrease in order intake but overall recovery continues.
- • Falling input prices and a stronger krona may influence the Riksbank's interest rate decision.
The latest Purchasing Managers' Index (PMI) data for May 2025 reveals that while the Swedish industrial sector continues to grow, it is experiencing a noticeable slowdown. The PMI fell from 54.2 in April to 53.6 in May, marking the tenth consecutive month where the index remains above the 50 level, which indicates expansion.
Economist Jörgen Kennemar from Swedbank commented on the situation, indicating that even though order intake has decreased, the overall recovery within the Swedish industry persists. The reduction in order intake suggests potential challenges ahead, yet the fundamentals remain robust for growth.
Interestingly, a sub-index shows that prices for input goods are on the decline. This trend is attributed to decreasing global raw material prices and a strengthening of the Swedish krona. These factors are important as they may influence the Riksbank's decision regarding interest rates in June, as the central bank contemplates its monetary policy response to the current economic conditions. Overall, while the pace of growth is slowing, the underlying recovery in Sweden's industrial sector is still encouraging, signaling resilience amidst shifts in international market dynamics.