Swedish Factory Growth Slows In October

(RTTNews) - Sweden's manufacturing sector continued to expand strongly in October, though the pace of growth eased somewhat since September, survey data from Swedbank and the logistics association SILF showed on Monday.

The purchasing managers' index for the manufacturing sector dropped to 55.1 in October from 55.6 in September. A reading above 50 indicates expansion.

"However, continued sluggish development in the eurozone countries, a strong krona, and uncertainty about global trade policy may put a damper on things, even if we do not see it in companies' production plans," Swedish bank analyst Jorgen Kennemar said.

Among components, the new orders sub-index accounted for the largest negative contribution to the decline in the PMI total, followed by employment, inventory purchases, and delivery times. On the other hand, the production index climbed to the highest level in four years.

On the price front, the index for suppliers' raw and input prices rose to 51.7 in October from 51.2 in September. This indicates a further acceleration in input cost inflation, though it remained below its historical average.