Services PMI fell to 57.0 in May but stays at a high level
• The purchasing managers’ index for the service sector (Services PMI) fell to 57.0 in May from 60.1 in April. A three-month moving average dropped to 58.7, which is 0.7 points lower than the corresponding average in April, marking the fourth consecutive month that the index declined.
• The sub-index for employment fell 8.5 points, contributing 1.7 points to the drop in the Services PMI. The sub-index for business volumes fell to 56.1 in May, which is 6.2 points lower than the April reading, negatively contributing 1.6 points to the Services PMI. At the same time the index for planned business volumes decreased to 63.3 in May from 69.4 in April.
• The sub-index for new orders registered 59.5 in May, a marginal rise of 0.2 points compared with April. The index for order backlogs rose to 57.9 in May from 57.8 in April.
• The index for prices of suppliers’ intermediate goods rose to 63.0 in May, which is 0.2 points higher than the April reading.
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, 4 July 2018
For more information: Oscar Andersson, Swedbank Makro, tfn 08 – 700 92 85, firstname.lastname@example.org or Anna Sjöblom, Silf, tfn 073 – 518 70 11, email@example.com