Swedish Manufacturing Slowdown Stabilizes as Production Jumps
Sweden’s manufacturing slowdown stabilized in January as production increased.
An index based on responses from purchasing managers was a seasonally adjusted 49.2 in January compared with 44.6 the previous month, Stockholm-based Swedbank AB (SWEDA), which compiles the index, said today. A reading below 50 signals a contraction. The index was estimated to rise to 46.1, according to the average estimate of nine economists surveyed by Bloomberg.
Swedish economic growth slowed to 0.9 percent last year from 3.7 percent in 2011 as a slowdown abroad hurt demand for the country’s exports, the government predicted on Dec. 21. The Swedish central bank in December cut its main lending rate for a fourth time to 1 percent in a bid to boost growth.
PMI’s production sub-index rose to 53.8 from 45.3 while the order index rose to 49.7 from 41.3. The employment index rose to 40.8 from 40.5 and the delivery time index gained to 50.4 from 45.3.
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