Services PMI rose to 55.9 in February: Bright spots in the service sector
• Services PMI rose to 55.9 in February from 54.2 in January. It was a broad-based increase and means that service sector activity strengthened in February. The trend is still downward, however, despite bright spots, says Jörgen Kennemar, who is responsible for PMI analysis at Swedbank. The coming months will be pivotal to where the service economy is headed.
• All four sub-indexes included in the Services PMI rose in February with the biggest positive contributions from new orders and business volumes, followed by employment and delivery times.
• The index for service companies’ business volume plans fell for the third consecutive month but remains at expansionary levels (65.0 in February), indicating an optimistic view of the economy among service companies, notes Jörgen Kennemar. A majority of service providers continue to report rising intermediate goods prices at the supplier level even though the index fell to 60.6 in February from 62.0 in January.
• PMI-Composite index rose to 54.9 from 53.5 in January. This means that business activity strengthened somewhat after having fallen two months in a row.
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, 3 April 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