FX.co ★ Swedish Factory Activity Growth Improves

Sweden's manufacturing sector experienced robust growth at the onset of the fourth quarter, as evidenced by survey data released by Swedbank and the logistics association SILF on Friday.

The Purchasing Managers' Index (PMI) for the manufacturing sector climbed to 53.1 in October, up from 51.6 in September, as a reading above 50 signifies expansion.

"Swedish industry has shown a surprisingly positive performance in October following a downturn in the third quarter," noted Jorgen Kennemar, an analyst at Swedbank.

"However, it remains a display of resilience, despite the sluggish global economy and the threat of rising tariffs, which could temper future growth prospects."

Among the components, the order intake sub-index made the most significant positive impact on the PMI increase, followed by improvements in delivery times, production, and employment.

On the pricing front, the index for suppliers' raw and input prices declined further to 46.7 in October from 48.7 in September, marking the steepest decrease since January.

The persistent decline in raw material costs suggests a continued weakness in the industrial economy, which could enhance the likelihood of a more expansionary monetary policy.