👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

UPDATE 1-Swedish industry output dips, raises recovery doubt

Published 04/09/2010, 05:07 AM
Updated 04/09/2010, 05:24 AM

* Swedish industrial production down 1.5 percent yr/yr in Feb

* Transport problems seen partly to blame

* Feb industry order bookings rise 12.5 percent yr/yr

(Adds detail, background, analyst comment)

STOCKHOLM, April 9 (Reuters) - Swedish industrial output eased again in February, raising questions about how fast strong business and consumer sentiment gauges will feed into a solid upturn for the Nordic country's hard-hit manufacturers.

Swedish industrial production dipped 0.8 percent in February from January and fell 1.5 percent from a year earlier, statistics office SCB said in a statement on Friday.

Output in January was also revised down to show a 0.6 percent decline year on year versus a previous 0.2 percent decline. The month-on-month rise was revised to 1.2 percent from the orginally reported 1.6 percent.

"It's a negative surprise, and it puts some pressure on our forecasts for Q1 GDP," Danske analyst Stefan Mellin said.

The Swedish economy suffered its steepest fall since World War Two last year as the global financial crisis wiped out demand for the products of top-flight manufacturers such as world number two truck maker Volvo.

The downturn was eased by massive stimulus by governments and central banks and recent quarters have seen gauges of business and consumer sentiment rise steadily, but these have yet to yield a firm recovery.

"Industrial production continues to defy what we are seeing in the leading indicator data. It is a mystery," said Elisabet Kopelman, analyst at SEB.

"Our basic view is that the development seen in the leading indicators should be visible in the real data in time. This does not alter our view of the overall economy," she added.

Sweden's railway system was hit by massive delays and cancellations in February as harsh winter conditions left trains standing across the country. This was likely to have weighed on output in the month, Nordea analyst Torbjorn Isaksson said.

Order bookings for the industrial sector continued to rise, climbing 12.5 percent year on year compared to a revised 3.9 percent gain in the previous month.

"Order bookings for the export market are up 20 percent compared with one year earlier and that suggests there is a recovery at the door for industry," Isaksson said.

(Editing by Jason Neely)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.