Sweden Manufacturing Downturn Eases In June

(RTTNews) - Sweden's manufacturing sector contracted further in June, though the pace of decline has eased since May, survey data from Swedbank and the logistics association SILF showed on Friday.

The purchasing managers' index for the manufacturing sector rose to 44.8 in June from 40.7 in May. However, any reading below 50 indicates contraction.

Thus, the Swedish manufacturing sector remained in decline for the eleventh successive month.

"It is a continued weak industrial economy that the Swedish purchasing managers exhibit and we also see in other countries, not least in the euro countries" Swedbank analyst Jorgen Kennemar said.

The order intake sub-index accounted for the largest positive contribution to the PMI total, followed by delivery times and production, while inventories of purchased materials made a negative contribution.

For the second month in a row, the index of industrial companies' production plans for the next six months was below the growth zone.

The price pressure at the supplier level continued to ease in June, with the index for suppliers' raw and input goods prices standing at 40.8 versus 37.4 in May.