Swedish Manufacturing Growth Slows In December

(RTTNews) - Sweden's manufacturing sector remained in expansion zone for the fifth straight month in December, though at a weaker pace compared to the last two months, survey data from Swedbank and the logistics association SILF showed on Thursday.

The purchasing managers' index for the manufacturing sector dropped to 52.4 in December from 53.7 in November. However, a reading above 50 indicates expansion.

Among components, orders received made the largest negative contribution to the decline in the PMI, followed by manufacturing, while employment, delivery times, while inventories made positive contributions.

Price pressures intensified in December, with the raw material and input supplier price index rising to a 5-month high of 56.0 in December from 55.4 in November.

"A higher price increase pressure in industry at the same time as the weakening of the krona drives up companies' purchasing costs is something that the Riksbank should take into account before the next monetary policy decision," Swedish bank analyst Jorgen Kennemar said.

Looking ahead, industrial companies' production plans are more expansive in December, and the corresponding index rose to a new high for the year at 64.4.