2024.01.0207:00:00UTC+00Swedish Manufacturing Shrinks Further

Sweden's factory activity contracted again in December, while companies' production outlook improved, survey data from Swedbank and the logistics association SILF showed Tuesday.

The purchasing managers' index, or PMI, fell to 48.8 from 49.0 in November. A reading below 50 suggest decline in activity.

The average PMI reading rose for the fourth quarter to the highest level since the third quarter of 2022, Swedbank said.

"It appears that the economic downturn in Swedish industry has bottomed out but with the risk of sluggish growth due to the weak global economy," Swedbank analyst Jorgen Kennemar said.

Three out of five sub-indices of the PMI declined in December.

The production sub-index made the biggest negative contribution. The sub-indexes for inventories and delivery times made a positive contributions.

The index for companies' production plans rose in December to the highest level in eight months, suggesting that a weak global economy and sluggish order intake have not prevented hopes of a better performance in the coming months.

The PMI survey also found that the price pressures in the industry continues to fall, but not to the same extent as before, as the index has risen from the bottom level reached last spring, Kennemar said.

The latest survey was conducted from December 6-22.