Services PMI fell to 56.3 in October: Slowing expansion
• The purchasing managers’ index for the service sector (Services PMI) fell to 56.3 in October from 56.6 in September. This means that the total index declined for the fourth consecutive month, reaching a new low for the year.
• The sub-indexes for business volumes and suppliers’ delivery times fell in October, while employment and new orders rose. The employment index reached 59.6, an indication of continued widespread job growth. New orders have stabilized around the 55 level, but this is the sub-index that has fallen the most in the last three months (Aug-Oct) compared with the period May-July.
• Service companies’ business volume plans fell to 67.4 in October after having risen four months in a row. This is still a high index level, however, indicating a continued expansion.
• The index for prices of suppliers’ intermediate goods rose to 62.1 in October from 60.5 in September, the highest level since June of this 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: Wednesday, 5 December 2018
Jörgen Kennemar, Swedbank Public Affairs, tfn 070 – 643 83 29, firstname.lastname@example.org
Anna Sjöblom, Silf, tfn 073 – 518 70 11, email@example.com