Services PMI fell to 47.9 in November: Weaker activity than normal
• The purchasing managers’ index for the private service sector (Services PMI) dropped in November for the third month in a row to 47.9 from 49.4 in October. The decrease in the index means that service sector activity is continuing to decline in the fourth quarter to levels that have not been seen in six years and that are contributing to lower hiring needs in service companies, says Jörgen Kennemar, who is responsible for PMI analysis at Swedbank.
• Three of four subindexes in the Services PMI were below the 50 mark, indicating widespread weakness among service companies. The subindex for new orders saw the single largest drop, followed by suppliers’ delivery times and business volumes, which together contributed 1.5 points to the decrease in the Services PMI.
• Service companies’ business plans rose in November. This is a positive economic signal and shows that companies still have an optimistic view of future market development despite that the downside risks remain high, says Jörgen Kennemar.
• Silf/Swedbank’s PMI Composite index dropped for the third straight month to 47.2 in November from 48.5 in October, reinforcing the view that private sector activity is slowing in the fourth quarter. Since November of last year the composite index has fallen 7.6 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: Monday, 7 January 2020
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