Swedish manufacturing growth eased to the lowest since September 2020 amid uncertainty over the global outlook and the supply shock created by the war in Ukraine, survey data from Swedbank and the logistics association SILF showed on Friday.
The purchasing managers’ index for the manufacturing sector fell to 57.3 in March from a revised 58.0 in February.
A PMI reading above 50 suggests growth in the manufacturing sector. This was the lowest since September 2020, when the reading was 56.3.
Though the index remained at a higher level than its historical average, the industrial economy is in a softer growth phase, Swedbank analyst Jorgen Kennemar said.
“At the same time, uncertainty about the global economy and the risk of renewed supply disruptions has increased in the wake of the war in Ukraine and the Western sanctions against Russia, which probably contributed to the lower production plans in March,” Kennemar said.
Three out of the five sub-indexes declined in March. The largest negative contribution came from order intake and employment, while the biggest positive contribution came from rising delivery times and falling purchasing inventories.
Production plans in the industry became less expensive in March.
Suppliers’ raw material and intermediate goods increased to the seventh highest level.