Sweden’s manufacturing activity contracted for the fourth straight month in November, survey data from Swedbank and the logistics association SILF showed on Thursday.
The purchasing managers’ index for the manufacturing sector fell to 45.8 in November from 46.6 in October. Any score below 50 indicates contraction in the sector.
“The deteriorating global economy is leaving an increasingly deep impression on Swedish industry, not least in the form of reduced order intake and lower production, but also a reduced price pressure from the supplier level, which on in the long term can moderate the already high inflation,” Swedbank analyst Jorgen Kennemar said.
Among components, the manufacturing sub-index accounted for the largest negative contribution to the decline in the PMI total, followed by employment and delivery times, while the inventories sub-index made a positive contribution due to lower purchase inventories.
Meanwhile, the index for production plans fell to 53.7, the lowest level in more than two years.
In November, raw material and input prices fell from 67.4 in October to 58.0, indicating that price pressures in the industry continue to ease.