Swedish manufacturing continues jobless growth

The Swedish manufacturing industries are continuing to grow strongly, but few jobs are being created, according to figures from Swedbank and supply chain management company Silf.

The industrial purchasing survey, which shows growth in industry, was at 63.6 in December, compared to 61.5 in November. The December figure was the highest since July and the seventh highest monthly figure in the history of the index, which was founded in November 1994.

Swedish industry is still experiencing high growth levels, according to Swedbank and Silf.

Orders both from Swedish and foreign markets grew further in December and industry’s production plans for the coming six months remain at a high level.

“We can only see a small improvement to employment rates,” said Swedbank chief economist Hubert Fromlet.

“The reason for this is that companies are still chasing productivity and effectiveness, and this means fewer new appointments. This is how it has been for several years, and this is how it will also be in the future,” he said.

Fromlet was optimistic about global growth.

“Our figures give no indication of a visible global fall-off in growth, despite the current levelling-off of American growth,” he said.

The German economy grew strongly last year, with country’s industrial purchasing index rising from 58.3 in November of 59.4 in December – the second highest monthly figure last year. In France, however, industrial growth was down somewhat in December.

The index is compiled through interviews with around 200 purchasing managers in the manufacturing industries. A figure of over 50 indicates growth.