Services PMI fell to 56.6 in September: Downturn from high level
- The purchasing manger's index for the service sector (Service PMI) fell to 56.6 in September from 57.1 in August. The September outcome means that the total index continued to decline in the third quarter and for the second quarter in a row, but remains in the growth zone (over 50).
- All sub-indexes in the Services PMI contribute to the September decline, with the exception of business volumes. The sub-index for supplier's delivery times reduced the Services PMI by 0.5 points, while new orders and employment reduced it by 0.2 and 0.3 points, respectively.
- Services companies business volume plans rose for the fourth consecutive month and reached 71.0 compared with 68.8 in August, indicating continued optimism about the economy.
- The index for prices of supplier's intermediate goods fell in September to 60.6 after an unchanged level of 61.6 in both July and in August.
The Purchasing Manager's Index (PMI) is a business cycle indicator for the Swedish economy produced by Swedbank in cooperation with Silf. The PMI is produced for both 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 level below 50 signals a contraction. The PMI for the manufacturing sector is published on the first banking day each month at 08:30 am (CET), while the corresponding index for service sector is published onthe third day of each month at 08:30 am (CET).
Jörgen Kennemar, Swedbank Public Affairs, phone +46706438329, firstname.lastname@example.org
Anna Sjöholm, Silf, phone, +46735187011, email@example.com
Next publication of Purchasing Manager's Index - Service: Monday 5 November 2018