Sweden’s manufacturing sector expanded at a sharply faster pace in April, survey data from Swedbank and the logistics association SILF showed on Monday.
The purchasing managers’ index for the manufacturing sector increased to 69.1 in April from 64.7 in March. Economists had expected an improvement to 62.5.
A PMI reading above 50 suggests growth in the manufacturing sector.
“Since the bottom level in April last year, the PMI total has increased by 32.7 index units, which is a much faster rise compared to the recovery after the global financial crisis of 2008/09,” Swedbank analyst Jorgen Kennemar said.
Among the sub-indices, the largest positive contribution came from order intake, production, delivery time and employment.
The Swedish manufacturing industry showed a growing optimism in the industry to increase production in the next six months, despite destructions in global trade and a shortage of inputs.
Prices for suppliers’ raw materials and intermediate goods increased to the highest level in twenty-six years.
“It is becoming increasingly clear that the higher level of activity in industry, rising global raw material prices and supply disruptions have led to increased cost pressures at the producer level, which in the long run may have an impact on consumer prices,” Kennemar said.
The material has been provided by InstaForex Company – www.instaforex.com