** CORRECTED**: Services PMI rose to 61.3 in March: Broad gains to new highs
- The purchasing managers’ index for the service sector (Services PMI) rose to 61.3 in March from 59.8 in February. All four sub-components are clearly in the growth zone, with three of four sub-indices above the 60 mark. The March result shows that activity in the private service sector strengthened in the first quarter compared with the previous quarter, increasing by 1.5 points to 60.8 on average.
- The sub-index for suppliers’ delivery times added 5.5 points to 61.1 and accounted for the biggest positive contribution (1.1 points) to the rise in the Services PMI, followed by the sub-indices for new orders (0.7 points) and employment (0.2 points).
- The sub-index for business volumes fell from 64.5 to 62.6 in March, thereby contributing negatively. This is the second consecutive month that the sub-index fell, indicating that the rate of increase has slowed somewhat, though from a high level.
- The index for prices of suppliers’ intermediate goods rose by 7.3 points to 65.9, the highest index level since 2011. The index for planned business volumes remains at a high level with a reading of 72.5 in March, compared with 68.9 in February.
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, 4 May 2017
For more information, contact Jörgen Kennemar, Swedbank Macro Research, +46 (0)70 64 38 29, firstname.lastname@example.org or Anna Sjöblom, Silf, +46 (0) 73 518 70 11, email@example.com