Sweden Industrial Output Plunges as European Demand Falters
Swedish industrial production fell more than estimated in September as the export-dependent country suffers from declining sales abroad.
Industrial production fell an annual 5 percent, after rising a revised 2.7 percent the previous month, Stockholm-based Statistics Sweden said today. Production was estimated to fall 0.1 percent, according to the median forecast in a Bloomberg survey of six economists. Output fell a monthly 4.1 percent, compared with a predicted drop of 1.5 percent.
Sweden’s central bank last month signaled it may cut rates for a fourth time since December last year as it trimmed its 2012 growth forecast to 0.9 percent from 1.5 percent. Exporters including Ericsson AB (ERICB), the world’s largest maker of wireless equipment, and truck maker Volvo AB (VOLVB) are cutting jobs as demand slows from Europe.
Industrial orders fell an annual 5.3 percent and increased a monthly 1.2 percent in September, Statistics Sweden said. Exports orders dropped an annual 4.3 percent, while domestic orders declined an annual 6.4 percent.
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