Sweden Industrial Output Slumps as Europe Crisis Hits ExportsNiklas Magnusson
Swedish industrial production declined more than estimated in November as Europe’s sovereign debt crisis hurt exports from the largest Nordic economy.
Industrial production fell 1.3 percent in November, after expanding a revised 0.6 percent the previous month, Stockholm-based Statistics Sweden said today. Production was estimated to drop 0.5 percent, according to the median forecast in a Bloomberg survey of 10 economists. Output fell an annual 4.3 percent, compared with a revised 4.3 percent decline in October.
Sweden’s manufacturing industry contracted for a fifth consecutive month in December as the euro-area debt crisis erodes demand for exports, about 70 percent of which go to Europe. That prompted the central bank to deliver its fourth rate cut in 12 months in December to boost growth.
Sweden’s government on Dec. 21 cut its economic outlook for this year and next, projecting 1.1 percent growth in gross domestic product in 2013, versus an earlier estimate for a 2.7 percent expansion.
Industrial orders slumped 5.2 percent in the month and were down 3 percent in the year, Statistics Sweden said. Export orders dropped 7.6 percent in the month, while domestic orders declined 1.8 percent.