(Corrects monthly production figure in second paragraph)
Swedish industrial production fell for a fourth month in May as the European debt crisis continues to hurt demand for the export-dependent Nordic country’s exports.
Industrial production fell an annual 2.3 percent in May after falling 6.4 percent the previous month, Stockholm-based Statistics Sweden said today. Production was estimated to fall 6.9 percent, according to the median forecast in a Bloomberg survey of nine economists. Output rose a monthly 3.5 percent after falling 0.2 percent the previous month and compared with 0.4 percent growth predicted by analysts.
Sweden’s government last week cut its forecast for economic growth next year to 3 percent from 3.3 percent as spending cuts in Europe is reducing demand for exports. About 70 percent of Swedish output is sold abroad, of which about 70 percent is bound for Europe, where countries are cutting spending to reduce private and public debt.
Sweden’s central bank, the Riksbank, last week pushed back the timetable for when it will next raise its benchmark lending rate and said it may even have to cut the rate for a third time since December later this year if the situation in Europe develops worse than forecast.
Industrial orders for Swedish companies fell an annual 3.3 percent and rose a monthly 4.5 percent in May, Statistics Sweden said today.
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