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The Swedish industrial economy continues to slow, according to PMI data

05-10-2011

The Swedish PMI dropped from 48.7 in August to 48.1 in September, which leaves it outside the growth zone for the second consecutive month. The sharp slowdown in the summer months indicates that the Swedish industrial economy is stagnating or that it has entered a recession, according to Swedbank’s Economic Research Department.

The dividing line between growth and decline – in line with US praxis – has been drawn at a total index of 50. Since last September, the PMI has fallen by 15.2 points.

The component indices for delivery times and employment accounted for the largest contributions to the drop in the PMI. The index for new orders also fell, though the decline in the export and home markets was less severe in September than during the previous month.

Price pressure from producers continues to drop. The index for commodity and intermediate goods prices fell from 47.4 in August to 47.0 in September due to lower global commodity prices and a weaker global economy.

The Swedish PMI has been calculated since December 1994. The model for the index is the ISM - one of the most highly regarded and well-recognized economic indicators in the United States. 

The Swedish PMI is published – in Swedish – the first weekday each month at 8:30 CET at swedbank.se – Swedbank’s external Swedish web page. An English translation is available in Swedbank’s Newsroom a few days later.

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21 October 2014

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