The Swedish Krona to Pound Sterling (SEK/GBP) Exchange Rate firmed on Tuesday as a better-than-forecast Services PMI report added to signs that the Scandinavian nation’s economy rebounded in the second quarter.
Last week the Krona was buoyed by the release of data which showed that the Swedish economy returned to growth in the second quarter of the year as rising exports and increased household spending increased.
The report released on Tuesday also added to the positive manufacturing data released at the end of last week.
The data showed that Production increased sharply in July, as the corresponding index rose to 59.6 in July from 55.9 in June; this contributed positively to the overall increase in manufacturing activity.
Sweden’s services sector was shown to have expanded sharply last month as a rise in new orders pushed growth higher.
According to the report published by the Swedish National Association for Purchasing and Logistics, the Purchasing Managers Index for the services sector increased sharply from June’s figure of 54.6 to 60.1 in July.
Amongst the sub indexes also published, the new order index surged to its highest level since 2010. The index jumped to a figure of 65.5.
The employment index also improved by 4.5 points to 56.6 in July and was the seventh consecutive month of growth.
The Swedish Krona also made gains against the Euro (EUR) after data out of the 18-member single currency bloc showed that activity increased less than expected last month. The softer than forecast figures added to fears that the recovery in the Eurozone has stalled.
‘The Euro has certainly reacted negatively to the PMI numbers. On the main Eurozone numbers even 54 is not exactly a figure that sets the world alight. It returns us to what we’ve been seeing for a few weeks now- that the momentum in the
Eurozone is faltering,’ said Neil Mellor, a strategist from Bank of New York Mellon.
Swedish Krona (SEK) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Swedish Krona,11.5926 ,
Euro,,Swedish Krona,9.1994 ,
US Dollar,,Swedish krona,6.8702 ,
[/table]
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