SWEDEN
The Swedish manufacturing PMI rose for the third consecutive month in April, to 51.4 (vs an upwardly revised 50.4 prior). There was no consensus for the print.
- This is consistent with the increase in the manufacturing component of April’s Economic Tendency Indicator, which rose into expansionary territory at 100.5 (vs 98.6 prior).
- Looking at the sub-components, new orders rose to 54.6 (vs 51.5 prior) while employment rose to 49.1 (vs 46.8 prior). Production remained in expansionary territory at 52.2 (vs 54.9 prior).
- Raw material prices saw a notable rise to 53.4 (vs 46.8), though we note that expected manufacturing selling prices in the Economic Tendency Indicator remained at low levels in April.
- Overall, today’s print is consistent with analyst expectations for activity to recover through the remainder of this year, even after the Q1 flash GDP release was soft at -0.1% Q/Q.
- Elsewhere, we also note that company bankruptcy data released by UC this morning showed a 68% Y/Y rise in bankruptcies in April, a continuation of the trend flagged in the March Monetary Policy Report.
- Overall, this trend is another supportive factor for a Riksbank rate cut next week.
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