Services PMI rose to 63.8 in September: Highest level this year
• The purchasing managers’ index for the service sector (Services PMI) rose to 63.8 in September from 55.5 in August. The gains were broad, with positive contributions from all sub-indices. The increase in new orders, which was the biggest contributor, explains two fifths of the rise in the Services PMI. Business volumes were also an important contributor in September, with the sub-index explaining a quarter of the increase in the purchasing managers’ index.
• The sub-index for business volumes rose from 57.3 to 65.7 in September, corresponding to a positive contribution of 2.1 points to the Services PMI. The index for planned business volumes increased by 7.7 points to 71.5 in September.
• The sub-index for new orders rose from 54.3 to 64.4 in September. The index for order backlogs rose to 58.1 (48.8). This means that order backlogs, unlike in August, are now growing. Note that individual months should not be over-analysed.
• The index for prices of suppliers’ intermediate goods fell to 62.7 in September from 62.8 in August. A three-month moving average signals that inputs have increased fairly steadily in price since the end of last year.
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 the PMI 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 PMI 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: Friday, 3 November 2017
For more information please contact: Cathrine Danin, Swedbank Makro, phone 08 – 700 92 97, email@example.com or Anna Sjöblom, Silf, phone 073 – 518 70 11, firstname.lastname@example.org