Services PMI dropped to 54.1 in January: Weak start to 2019
• The purchasing managers’ index for the service sector (Services PMI) fell for the second month in a row, to 54.1 in January from 55.8 in December. The slowdown in the service sector continued in the first month of the year, consolidating the downward trend that began in 2018, says Jörgen Kennemar, who is responsible for PMI analysis at Swedbank.
• All four sub-indexes included in the Services PMI fell in January but remain in the growth zone. The biggest negative contributions to the monthly decrease were from new orders and suppliers’ delivery times at 0.7 points each. The sub-indexes for employment and business volumes together contributed 0.3 points to the decrease in the Services PMI.
• Service companies’ business volume plans for the next six months still exude optimism even though the index fell to 65.5 from 66.9 in December, says Jörgen Kennemar. At the same time the index for prices of suppliers’ intermediate goods rose to 62.1 from 61.3 in December, indicating an increase in price pressure.
• Silf/Swedbank’s PMI-Composite index, a composite of the purchasing managers’ indexes for manufacturing and the service sector, fell by 1.4 points in January to 53.3 compared with December. It is the second consecutive month that the index declined and shows that business activity is cooling.
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: Tuesday, 5 March 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