Sweden's manufacturing sector has continued to show expansion for the fifth consecutive month in December, albeit at a slower pace than seen in the preceding two months, according to survey findings from Swedbank and the Logistics Association SILF, released on Thursday.
The Purchasing Managers' Index (PMI) for the manufacturing sector fell to 52.4 in December from 53.7 in November. Nevertheless, a PMI reading above 50 signifies growth.
Among the various components, the decrease in new orders had the most significant negative impact on the PMI, closely followed by a reduction in manufacturing activity. Conversely, employment, delivery times, and inventory levels contributed positively.
Price pressures increased in December, with the index for raw material and input supplier prices climbing to a five-month high of 56.0, up from 55.4 in November.
"A stronger price increase pressure within the industry, coupled with the weakening of the krona raising companies' purchasing costs, are considerations that the Riksbank should give attention to in anticipation of the next monetary policy decision," noted Jorgen Kennemar, a Swedish bank analyst.
Looking forward, industrial companies' production plans have become more ambitious in December, with the corresponding index reaching a new high for the year at 64.4.
The material has been provided by InstaForex Company -
www.instaforex.com
