FX.co ★ Sweden Manufacturing Growth Strongest In 2 Years

Sweden's manufacturing sector experienced its most significant growth in two years this May, according to survey data released on Monday by Swedbank and the SILF logistics association.

The Purchasing Managers' Index (PMI) for manufacturing climbed to 54.0 in May, up from 51.9 in April. A reading above 50 signifies expansion within the sector.

"The May results bolster the perception of a more optimistic industrial economy," commented Jorgen Kennemar, an analyst at Swedbank.

The primary driver behind the PMI increase was a surge in order intake, followed by gains in production, shorter delivery times, and increased inventory purchases. However, employment showed a slight negative impact.

Additionally, the index for suppliers' raw and input goods prices rose to 55.4 in May from 53.4 in April, suggesting an uptick in price pressure at the supplier level. This increase is attributed to higher global metal prices and a weaker Swedish krona.