Swedish Factory Growth Improves In August

(RTTNews) - Sweden's manufacturing growth rebounded somewhat in August, survey data from Swedbank and the logistics association SILF showed on Tuesday.

The purchasing managers' index for the manufacturing sector rose to 56.1 in August from 55.7 in July. A reading above 50 indicates expansion. Moreover, the index remained above its historical average for the fourteenth consecutive month.

Among components, production made the largest positive contribution, followed by employment and reduced inventories of purchased materials, while order intake showed a negative contribution.

"Swedish industry continues to show robust development, but the results of recent months indicate more of a stabilization at a high level than of a further strengthening of the industrial economy," Swedbank analyst Jorgen Kennemar said.

Price pressures intensified in August, with the index for suppliers' raw and input prices rising to 75.4 from 67.2 in July. The increase in cost inflation was due to higher raw material costs and disruptions in global supply chains.