Services PMI fell to 59.1 in July: A strong outcome despite the decline
• The purchasing managers’ index for the service sector (Services PMI) fell to 59.1 in July from 59.8 in June. A three-month moving average fell 0.3 points to 58.6 in July compared with the corresponding average for June.
• The sub-index for suppliers’ delivery times fell to 54.9 in July from 61.7 in June and had the biggest effect on the Services PMI, producing a negative contribution of 1.3 points. The remaining sub-indices positively contributed to the Services PMI, with the sub-index for business volumes rising to 60.9 in July and adding 0.3 points. The contribution from the sub-index for new orders was 0.2 points. The sub-index for employment rose to 58.2 in July and contributed 0.1 point.
• The sub-index for new orders registered 60.6 in July and is 0.5 points higher than the June outcome. The index for order backlogs increased to 57.7 in July.
• The index for prices of suppliers’ intermediate goods decreased to 61.7 in July.
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: Wednesday, 5 September 2018
For more information: Swedbank Makro, phone 08 – 700 92 85, firstname.lastname@example.org or Anna Sjöblom, Silf, phone 073 – 518 70 11, email@example.com