Sweden’s manufacturing expanded at the fastest pace in more than two years in September as orders and employment grew.
An index based on responses from about 200 purchasing managers rose to a seasonally adjusted 56 last month, the highest since May 2011, from 52.2 the previous month, Stockholm-based Swedbank AB, which compiles the data, said today. A reading above 50 indicates an expansion. It was seen easing to 52.1, according to the median estimate of eight economists surveyed by Bloomberg.
The reading “suggests that the Swedish industrial economy has stabilized,” Swedbank said in a statement. “The sub-indexes for orders and production made the biggest contributions” to the rise, it said.
Sweden’s central bank on Sept. 4 decided to keep its main lending rate at a two-year low of 1 percent for at least another year to support the export-reliant economy, which has been suffering from weak demand from Europe. Sweden’s economy looks set to recover as demand from abroad picks up, central bank Governor Stefan Ingves said yesterday in a speech.
The PMI production sub-index rose to 57.6 from 53.9, while the order index increased to 59.9 from 54.5. The employment index rose to 51.8 from 48.2.