Services PMI fell to 54.0 in April: Downward but signs of stabilization
• The purchasing managers’ index for the private service sector (Services PMI) fell for the second consecutive month, to 54.0 in April from 55.1 in March. A three-month moving average shows, however, that the index has stabilized in recent months and it may be the first indication that it has bottomed out, says Jörgen Kennemar, who is responsible for PMI analysis at Swedbank. The months ahead will be critical therefore to where the sector is headed.
• The sub-index for suppliers’ delivery times was the biggest negative contributor to the Services PMI in April, followed by new orders and business volumes, while the employment index generated a positive contribution. Companies’ business plans were one of the few indexes that rose in April (66.1), after having dropped four months in a row.
• The slowdown in the service sector has also impacted prices. The index for intermediate goods prices fell for the fifth consecutive month, to 55.1 in April from 59.3 in March, suggesting that price pressure is easing despite the weaker krona.
• Silf/Swedbank’s PMI-Composite index fell for the second consecutive month, to 53.2 in April from 54.4 in March, indicating weaker business activity but with signs of a stabilization, says Jörgen Kennemar.
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 and PMI Composite: Wednesday, 5 June 2019
Jörgen Kennemar, Swedbank Public Affairs, tfn +4670 – 643 83 29, firstname.lastname@example.org
Anna Sjöblom, Silf, tfn +4673 – 518 70 11, email@example.com