Services PMI fell to 59.8 in February: Lower, but clearly in the growth zone
- The purchasing managers’ index for the service sector (Services PMI) fell from 61.1 to 59.8 in February. All seven components were well within the growth zone. Of the four sub-indices, three declined compared with the previous reading in January. Only the sub-index for new orders rose, contributing positively to the Services PMI by 0.6 points.
- Both the sub-index for new orders and the index for order backlogs stayed well above the 50 mark. While the new orders sub-index improved from 57.8 to 59.6, the index for order backlogs fell by 1.3 points to 56.6 in February.
- The sub-index for business volumes fell by 2.0 points between January and February. With an index level of 64.5, business volumes contributed -0.5 points to the Services PMI. With the exception of the previous month, you have to go back to spring 2011 to find a higher result than the one in February. The index for planned business volumes rose by 0.4 points to 68.9 in February.
- The index for prices of suppliers’ intermediate goods was 58.5 in February, i.e., 1.4 points lower than in January. A three-month moving average indicates that the perceived rate of increase in prices of intermediate goods may have slowed somewhat.
The Purchasing Managers’ Index (PMI) is a business cycle indicator for the Swedish economy produced by Swedbank in cooperation with Silf. The PMI is produced for both the manufacturing and service sectors. The aim of purchasing managers’ index is to get a quick measure of the current state of the economy. Each month purchasing managers are surveyed and an index calculated. An index level above 50 indicates expansion, while a level below 50 signals a contraction. The purchasing managers’ index for the manufacturing sector is published on the first banking day of each month at 8:30 am (CET), while the corresponding index for the service sector is published on the third banking day of each month at 8:30 am (CET).
Next publication of Purchasing Managers’ Index – Services: Wednesday, 5 April 2017
For more information: Cathrine Danin, Swedbank Research, phone +46 (0) 70 – 540 68 78, email@example.com and Anna Sjöblom, Silf, phone +46 (0) 73 – 518 70 11, firstname.lastname@example.org