July 1 (Bloomberg) -- Sweden’s manufacturing expanded at the fastest pace since May 2011 as the largest Nordic nation cemented its recovery.
An index based on responses from about 200 purchasing managers rose to a seasonally adjusted 53.5 in June from 51.9 the previous month, Stockholm-based Swedbank AB, which compiles the data, said today. A reading above 50 indicates an expansion. The index was seen easing to 51.2, according to the median estimate of nine economists surveyed by Bloomberg.
“Manufacturing has left its state of recession and should gradually return to positive growth,” Mikael Sarwe, an analyst at Nordea Bank AB, said in a client note. “We expect the PMI to gradually improve throughout 2013.”
The krona gained 0.3 percent to 8.6916 as of 8:46 a.m. in Stockholm. Versus the dollar, the krona gained 0.4 percent to 6.6707.
Growth in Sweden’s $500 billion economy will pick up to 1.7 percent this year and 2 percent in 2014 from 0.7 percent in 2012, Danske Bank A/S estimates. Seasonally adjusted unemployment fell to a 10-month low of 7.9 percent in May. Both Swedish manufacturing and consumer confidence rose last month.
“Sweden stands, in relative terms, on a stronger footing than many others but there will surely be a relatively shifting climate in the economy also during the autumn,” Swedish Finance Minister Anders Borg said last week.
Swedbank’s PMI production sub-index rose to 56.7 from 55.2, while the order index increased to 58.5 from 55.4, it said today. The employment index rose to 47.8 from 46.3, the delivery time index increased to 47.8 from 45.6 and the inventory index rose to 49 from 45.8.
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