Swedish business sector production rise above expectations in November

Swedish business sector’s production rose above forecasts in November. On a sequential basis, business sector production grew 0.5 percent, whereas it rose 1.8 percent year-on-year in November. The data for October was upwardly revised, and production has rebounded in recent months.

Production came in stronger than anticipated throughout the board. The biggest surprise was manufacturing industry, rising 1.9 percent sequentially. However, order intake dropped which, along with other indicators, imply that the rise in manufacturing production is temporary.

Overall, the production data came in above expectations, alleviating risk of a very subdued GDP growth for the fourth quarter, noted Nordea Bank in a research report.

“The Riksbank’s GDP forecast for Q4 at 0.2 percent q/q and 0.8 percent y/y is within reach. However, indicators are bleak and there is still risk for a set-back in the coming months”, added Nordea Bank.