Services PMI fell to 49.8 in September: Weak finish to the third quarter
• The purchasing managers’ index for the private service sector (Services PMI) dropped 4.4 points in September to 49.8. The index stayed in the growth zone in the third quarter at 52.1, but it continues to be lower than the historical average. This suggests weaker service activity than normal, says Jörgen Kennemar, who is responsible for PMI analysis at Swedbank.
• The downturn in the Services PMI was broad. All subindexes fell between August and September with business volumes and new orders being the biggest contributors to the monthly decline in the Services PMI, at a combined 3.8 points.
• Service companies’ business plans have to still be considered expansionary with a reading of 60.3 in September. But there is a risk that these plans are too optimistic due to the weaker orders, notes Jörgen Kennemar.
• Silf/Swedbank’s PMI Composite index fell to 48.8 in September from 53.5 in August. While the total index stayed in the growth zone in the third quarter at 51.5, it was the seventh consecutive quarter that the index was lower, indicating a continued slowdown in Swedish business activity.
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 November 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