Services PMI fell slightly to 57.3 in June: Delivery times weigh on index
- The purchasing managers’ index for the service sector (Services PMI) fell marginally to 57.3 in June from 57.9 in May. New orders and employment contributed positively. Other sub-indexes contributed negatively with suppliers’ delivery times as the big drag. Outcomes for individual months should be interpreted cautiously, however. The second quarter average was 58.5, down from 60.8 in the first quarter.
- The sub-index for business volumes fell to 58.3 in June, contributing negatively by 0.3 points. The average in the second quarter was more than 4 points lower than the previous quarter, indicating a slowdown. The index for planned business volumes rose 0.9 points to 65.7, though the index fell on average in the second quarter.
- The sub-index for new orders rose by 1.5 points to 57.9 in June. In addition, order backlog assessments were notably more positive in June with an index reading of 57.0, up 3.7 points. Employment growth turned slightly higher, as the increase in the sub-index of 0.6 points to 55.4 signals.
- The index for prices of suppliers’ intermediate goods fell from 59.4 to 58.7 in May. A three-month moving average indicates that price increases have now slowed.
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: Thursday, 3 August 2017
For more information, contact Ingrid Wallin Johansson, Swedbank Macro Research, phone +46 (0)8 700 92 95, firstname.lastname@example.org or Anna Sjöblom, Silf, phone +46 (0)73 518 70 11, email@example.com