Swedish industrial production unexpectedly climbed in June as the Nordic economy shows signs of withstanding the European debt crisis.
Industrial production rose an annual 1.1 percent in June after falling 2.4 percent the previous month, Stockholm-based Statistics Sweden said today. Production was estimated to drop 1.1 percent, according to the median forecast in a Bloomberg survey of six economists. Output rose a monthly 0.4 percent compared with a 1 percent contraction predicted by analysts.
The Swedish government may raise its growth forecasts published last month since the “economy has proven more resistant,” Finance Minister Anders Borg said last week after second-quarter output expanded more than estimated.
Sweden’s economy grew 2.3 percent in the second quarter, compared with analyst estimates of 0.6 percent. The government last month raised this year’s growth forecast to 1.1 percent following a better-than-estimated first three months of the year, and cut its projection for 2013 growth to 3 percent.
Industrial orders from Swedish companies fell an annual 1.9 percent and a monthly 0.2 percent in June, Statistics Sweden said today, suggesting waning demand may crimp output going forward as the European debt crisis weighs on exports.
About 50 percent of Swedish output is sold abroad, of which about 70 percent is bound for Europe where countries are cutting spending to reduce private and public debt.