SWEDEN: Manufacturing PMI Another Solid Economic Data Release

The Swedish manufacturing PMI rose to 53.5 in February, from a 0.2p point upwardly revised 53.1 prior. Although there was no consensus for the print, it’s another solid piece of economic data which underscores expectations for a Riksbank pause in March. As noted above, SEK continues to outperform the G10 this morning.

• The manufacturing PMI has been in expansionary territory since July 2024, and has better reflected the recent rise in industrial production momentum than the Economic Tendency Indicator’s manufacturing sentiment series.
• In February, new orders were 54.8 (vs 54.4 prior), driven largely by the domestic orders component. Production (53.8 vs 52.3 prior) and employment (54.7 vs 54.5 prior) also rose on the month.
• Input prices remained expansionary, but softened to 52.4 (vs 54.3 prior), consistent with the Economic Tendency Indicator series.
• The Riksbank’s Business Survey (due 0830GMT today) may not alter expectations for the next decision, but will nonetheless be an important input for the March MPR rate path.