Swedish manufacturing growth eased to the lowest since August 2020 as the impact of the war in Ukraine and the Covid-19 pandemic-related lockdown in parts of China began to hurt activity, survey data from Swedbank and the logistics association SILF showed on Monday.
The purchasing managers’ index for the manufacturing sector fell to 55.0 in April from a revised 56.8 in March. A PMI reading above 50 suggests growth in the manufacturing sector.
“This is the lowest level since August 2020 and means that growth in Swedish industry has lost further momentum at the same time as the downside risks have increased with the war in Ukraine and the shutdowns of the Chinese economy, which is starting to have a negative impact on companies’ order books and production plans,” Swedbank analyst Jorgen Kennemar said.
Among the sub-indexes, the largest negative contribution came from production, delivery time and employment, while those for order intake and purchasing inventories increased.
Production plans in the industry has crept up in April.
Suppliers’ raw material and intermediate goods prices decreased, though price pressures remained high.