Swedish industrial production data comes in weak in June

Sweden has released weak industrial production data for the month of June. According to Statistics Sweden, industrial output, on seasonally adjusted basis, fell 0.4 percent month-on-month Consensus projections were for a rise of 0.6 percent. On a year-on-year basis, industrial output fell 1.4 percent in Sweden. Consensus expectations were for a rise of 3.7 percent.

Moreover, the figures for May were revised down significantly. The month-on-month figure was revised down from a drop of 0.8 percent to a fall of 3.2 percent, whereas the year-on-year figure was revised down to a decline of 1.5 percent from a growth of 1.7 percent.

The electronics industry recorded the largest rise amongst the sub-sector, whereas the aggregate for the chemical industry and the pharmaceutical industry indicated the biggest decline. For the second quarter, industrial output dropped 2.1 percent on a seasonally adjusted basis as compared with the first quarter, stated Statistics Sweden.

Meanwhile, the Index of Service Production rose by 0.2 percent on sequential basis in June. On a year-on-year basis, the index of service production rose 3.8 percent in June, whereas on a quarter-on-quarter basis, the index rose 2.6 percent in the second quarter of 2016.

Overall, the data released on Wednesday affirms the view that Swedish economy continued to indicate growth, whereas the manufacturing industry is losing momentum. The subdued manufacturing sector is highlighted by stagnating order intakes, noted Nordea Bank in a research report.