Sweden Manufacturing Downturn Intensifies In September

(RTTNews) - Sweden's manufacturing activity deteriorated at a faster pace in September, as the majority of components made negative contributions, survey data from Swedbank and the logistics association SILF showed on Monday.

The purchasing managers' index for the manufacturing sector dropped to 43.3 in September from 45.5 in August. Any reading below 50 indicates contraction.

Thus, the Swedish manufacturing sector remained in deterioration for the fourteenth successive month.

"The downward spiral for Swedish industry continues, and the challenges have rather increased this autumn, with a slower global economy and reduced world trade, Swedbank analyst Jorgen Kennemar said.

Among components, the employment sub-index accounted for the largest negative contribution, followed by production, delivery times, and order intake, while inventory purchases made a positive contribution to the PMI total.

Swedish companies' production plans are clearly less expensive than last year but still in the expansion zone. On the price front, purchase costs rose for the second straight month in September.