Growth in manufacturing sector is expected to be strong in Sweden in 4Q

October 28, 2010 by timbercommunity

A recent survey indicates production growth in Sweden during the fourth quarter. Order growth for the manufacturing industry was strong in the third quarter shows a recent report from National Insitutet of Economic Research (www.konj.se). Companies' order books have improved but is still slightly weaker than normal. Output growth has been strong and capacity utilization has risen further. 

In contrast a combination of several questions designed to summarize the state of the industry to the timber industry shows it still has difficulty (with Confidence indicator value of -26) while it goes better for pulp, paper and paper products industries whose confidence has a value of 10. The production volume in the pulp and paper will increase as well as sales while the number of employees will drop according to the survey. One of the main obstacles to companies' production is a shortage of machinery and plant capacity. Capacity utilization in the pulp and paper is estimated to 91% during Q4.