In January 2025, Sweden’s Manufacturing Purchasing Managers’ Index (PMI) increased to 52.9 from 52.4 in December 2024. This marks the sixth consecutive month the index has remained above the 50-point threshold, indicating ongoing expansion in the manufacturing sector.
Key Drivers of Sweden’s PMI Growth
- New Orders: The sub-index for new orders rose to 54.1 from 50.4 in December, suggesting a significant uptick in demand.
- Employment: Employment levels improved, with the sub-index climbing to 54.4 from 53.6, reflecting increased hiring in the sector.
Areas of Concern
- Delivery Performance: The delivery performance sub-index declined to 50.6 from 53.8, indicating slower supplier deliveries.
- Production: The production sub-index slightly decreased to 52.1 from 52.3, showing a marginal slowdown in output growth.
Business Optimism
Industrial companies remain optimistic, with production plans reaching a two-year high of 65.2, up from 64.4 in the previous month. This optimism persists despite potential challenges such as higher tariffs.
Price Trends
The index for raw and input prices decreased to 54.3 from 55.7, suggesting easing price pressures amid a sluggish global economy and supply chain disruptions.
Comparative Perspective
In contrast, Sweden’s Services PMI fell to 50.1 in January from 51.2 in December, marking the third consecutive monthly decline and indicating a slowdown in the services sector.
Conclusion
The rise in Sweden’s Manufacturing PMI to 52.9 in January 2025 reflects continued expansion, driven by increases in new orders and employment. However, challenges such as slower delivery performance and a slight dip in production growth warrant close monitoring. The sustained optimism among industrial companies is a positive sign for the sector’s outlook.
