Services PMI fell to 53.3 in May: Slowdown in the service economy
• The purchasing managers’ index for the private service sector (Services PMI) fell by 0.6 points in May to 53.3, the lowest level since 2016. This marks the third month in a row that the Services PMI has fallen, reinforcing the downturn in the service economy that has continued since 2018, says Jörgen Kennemar, who is responsible for PMI analysis at Swedbank.
• New orders were the biggest decliner in the Services PMI in May, followed by employment, while the sub-index for business volumes rose. Companies’ business plans still have to be considered positive in May, when the index reading was 66.0, against a backdrop of slowing order bookings and global economic uncertainty, states Jörgen Kennemar.
• The index for intermediate goods prices at the supplier level rose in May to 57.8 after having fallen for three consecutive months. While price pressure at the producer level has eased compared with a year ago, there are still a larger share of service providers that are reporting rising prices than manufacturers, where the corresponding index reached 51.5 in May.
• Silf/Swedbank’s PMI Composite index rose in May to 53.3 from 53.0 in April, driven by manufacturing. It is the second month in a row that the index is higher, but with an index level that reflects lower business activity compared with last year. Since May 2018 the PMI Composite has fallen 4.1 points
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 July 2019
Jörgen Kennemar, Swedbank Public Affairs, tfn +4670 – 643 83 29, email@example.com
Anna Sjöblom, Silf, tfn +4673 – 518 70 11, firstname.lastname@example.org