Services PMI fell to 55.3 in March: Slowdown in the economy
• The purchasing managers’ index for the private service sector (Services PMI) fell in March to 55.3 from 55.8 in February. While the service sector is still in the growth zone, it has gradually lost momentum in recent quarters, says Jörgen Kennemar, who is responsible for PMI analysis at Swedbank. Since the first quarter of 2018 the Services PMI has fallen 4.1 points.
• Three of four sub-indexes included in the Services PMI fell in March compared with February. The biggest decline was for employment, followed by business volumes and new orders, while the sub-index for delivery times stayed at unchanged levels.
• Service companies’ business volume plans fell in March for the fourth consecutive month but remain at a high level (63.6). The companies’ production plans indicate continued optimism despite a downward adjustment in recent months, notes Jörgen Kennemar. The index for intermediate goods prices at the supplier level fell in March to 59.6 from 60.5 in February, dropping below the 60 mark for the first time since January 2018.
• Silf/Swedbank’s PMI-Composite index fell to 54.6 in March from 54.9 in February driven by the service sector, while manufacturing registered a marginal increase. This means that business activity started weaker in the first quarter compared with the end of 2018, 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, 6 May 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