Why Did Swedish Industrial Production Fall?
Swedish industrial production contracts
Swedish industrial production fell by 1.4% in June on an annual basis—compared to a 1.5% drop in the previous month. On a monthly basis, the industrial production in Sweden fell by 0.4% in June—compared a 3.2% decline in the previous month and below estimated growth forecasts of 0.6%. The decline was driven by aggregate weakness in the pharmaceutical and chemical sectors even as the electronics industry showed strength. New orders fell by 1.6% on an annual basis in June—compared to a 0.9% contraction in May.
The iShares MSCI Sweden (EWD) rose by 0.63%, while Swedish company Ericsson (ERIC) rose by 0.41% on August 10. Last month, the Swedish GDP released below market expectations. To learn more, read Scandinavian Macroeconomic Data Are below Expectations.
Consumer prices in Norway rose above expectations
Consumer prices in Norway rose by 4.4% in July on an annual basis—compared to a rise of 3.7% in the previous month and above forecasts of 3.8% growth. It was the highest recorded inflation in Norway since October 2008—primarily driven by higher prices of utilities and housing.
Other sectors like food, recreation and culture, clothing and footwear, and transportation also contributed to the increase in consumer prices. On a monthly basis, Norwegian inflation expanded by 0.6%—in line with the growth in the previous month and better than expectations of a 0.1% contraction. The iShares MSCI Norway Capped (ENOR) rose by 1.0%, while Norwegian company Statoil ASA (STO) fell by 1.3% on August 10.
Danish inflation rose in line with forecasts of 0.3%
Consumer prices in Denmark rose on an annual basis by 0.3% in July—compared to the same rise in the previous month and in line with estimated forecasts. The higher prices were driven by an increase in the cost of housing, utilities, clothing and footwear, and restaurants and hotels. The iShares Europe (IEV) rose by 0.38% on August 10.