Sweden Annual Industrial Production Declines
(Corrects month in first paragraph.)
Swedish industrial production fell for the fifth month in six in July as exports suffer from slowing European demand and a surging krona.
Production fell an annual 0.4 percent, Stockholm-based Statistics Sweden said today. It was estimated to fall 2.1 percent, according to the median forecast in a Bloomberg survey of six economists. Output rose a monthly 0.3 percent, compared with a predicted 0.3 percent contraction.
Sweden’s central bank last week cut its main lending rate for a third time since December to 1.25 percent, saying that that “weak demand from the euro area will now damp exports” and citing the strong currency.
The krona last month hit a 12-year high against the euro as investors fled the common currency amid a deepening debt crisis. Swedish business and unions have pushed for the bank to cut rates, in part to weaken the currency. Sweden gets about half its economic output from sales abroad, of which some 70 percent go to Europe.
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