Swedish manufacturing growth remains strong in April, uptick in manufacturing production likely in future

Swedish manufacturing sector continued to be on a healthy level. The manufacturing PMI fell to 62.5 in April from March’s 65.2. However, it continues to be strong. Consensus expectations were for the PMI to drop to 62. The vital sub-indices for order intake and production fell in the month to 63.7 and 62.7 respectively. The index for export orders also fell to 57.9, while the index for inventories dropped to 46.9 from 47.4.

On the other hand, the employment index was up from 63.4 in March to 64.1 in April. According to a Nordea Bank research report, the employment in manufacturing industry is expected to see a rapid recovery. Meanwhile, the input prices index was dropped in the month and is expected to continue to fall as prices of metal have levelled out.

Other manufacturing industry indicators have come out positive and indicate that there would be an uptick in manufacturing production going forward. The rebound shows the synchronized upturn in the global economy, added Nordea Bank.