Swedish capacity utilization falls marginally in Q2

Capacity utilization in Sweden’s industry dropped marginally 0.2 percentage points in the second quarter from the first quarter of 2016, stated Statistics Sweden. The decline in the second quarter is insignificant and capacity utilization continues to be above average. The decline signifies that the level of utilization dropped to 88.8 percent, in seasonally adjusted terms.

In year-on-year basis, capacity utilization rose 0.4 percentage points in  the second quarter and indicated a level of utilization of 89.1 percent in calendar adjusted figures, stated Statistics Sweden.

But, there is possibility that capacity utilization might fall further in the future as exports declined in the first half of 2016 and as the outlook is uncertain, said Nordea Bank in a research note. The only sector facing headwinds in the Swedish economy is the export industry. However, other sectors are registering a high level of activity. Resource utilization is likely to be higher than normal in the total economy, stated Nordea Bank.

Elsewhere, figures indicated that inventories contribution to the Swedish economic growth was roughly consistent with the second quarter GDP flash estimate. However, inventory figures for the first quarter were significantly revised upward. The revised figures indicate towards 1.2 percentage point contribution to growth, up from 0.5 percentage point. This might signify an upward revision to the GDP growth figure for the first quarter, according to Nordea Bank.