Sweden: Industrial production falls unexpectedly in August
October 10, 2013
In August, industrial production fell 2.3% over the previous month in seasonally and working-day adjusted terms. The decrease contrasted both the revised 1.8% rise recorded in July (previously reported: +0.7% month-on-month) and market expectations of a 0.5% increase. According to Statistics Sweden (SCB), the deterioration came on the back of a sharp drop in the electronics goods and motor vehicles industries.
Compared to the same month last year, industrial production fell 6.9% in working-day adjusted terms, which was well below the revised 2.8% contraction observed in July (previously reported: -3.7% year-on-year). As a result of the annual reading, annual average growth in industrial production fell from minus 3.6% in July to minus 4.3% in August.
FocusEconomics Consensus Forecast panelists see industrial production contracting 0.2% in 2013, which is up 0.1 percentage points from the previous month's estimate. For 2014, the panel expects industrial production to increase 3.4%, which is down 0.4 percentage points from last month's projection.
Author: Dirina Mançellari, Senior Economist