Sweden: Industrial production contracts for third month in a row
September 4, 2015
Industrial production in July fell 3.0% over the previous month in seasonally-adjusted terms, which was a greater contraction than the revised 1.1% decline recorded in June (previously reported: -0.9% month-on-month). July’s reading was the lowest in four years and drastically undershot market expectations of a 0.3% expansion. According to Statistics Sweden (SCB), the monthly result was driven by a deterioration in a majority of sectors. The electrical equipment sub-sector saw the largest deterioration, while the petroleum industry showed the largest increase. The disappointing figure suggests that the industrial activity that supported strong GDP growth in Q2 likely did not carry over into the third quarter.
In annual terms, industrial production plummeted from a 2.0% increase in June to a 1.9% contraction in July. However, annual average growth in industrial output eased from minus 1.4% in June to 1.2% in July, the highest figure since March 2012.
Author: Robert Hill, Economist