Manufacturing PMI Climbs, But Inflation Outlook Unclear

The Swedish November manufacturing PMI, released earlier today, rose to 49.0 from an upwardly revised 46.2. However, the press release notes a risk that further downside is on the horizon as higher interest rates and dampened world trade volumes continue to pressure Swedish industry.

• Overall, the print of 49.0 aligns with the 99.1 manufacturing figure seen in the Economic Tendency Indicator this week.
• The index for suppliers' raw and input goods prices rose in November to 47.1 from 43.8, indicating that price pressures are still falling, though not to the same extent as previously.
• However, expected selling prices for manufacturing firms rose for the second consecutive month in the Economic Tendency Indicator, making it hard to judge the overall picture.
• Indeed, the PMI press release notes that the weaker krona has seemingly not have an effect on input prices yet, "but may come at a later stage when supplier agreements are renegotiated", suggesting upside risks in the coming months.
• SEK saw some strength following the release and has been further aided by today's positive risk backdrop, allowing it outperform much of the G10 alongside NOK.