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Sweden Manufacturing Deteriorates Further

Sweden's manufacturing sector contracted for the third month in a row in November to the lowest in seven years, survey data from Swedbank and the logistics association SILF showed on Monday.

The manufacturing purchasing managers' index, or PMI, fell to 45.4 in November from 46.0 in October. Any reading below 50 indicates contraction in the sector.

The headline index reading was the lowest since 2012.

There are no clear signs of a turnaround although production plans were one positive economic signal in November, Swedbank analyst Jorgen Kennemar said.

The sub-indexes for order intake and employment declined in November, while those for production, delivery times and inventories increased.

All the sub-indices excluding stocks were below the score 50 for the third month in a row, indicating a weak activity in the industry.

The production plans in the manufacturing companies increased in November, remaining below the average for this year.

The sub-index for suppliers' raw and input commodity prices fell in November to the lowest level since February 2016. This shows that the weaker price pressure widespread in the industry may limit Swedish inflation in the long term, Swedbank analyst Kennemar said.

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