Services PMI rose to 58.6 in November: The recovery continues
• The purchasing managers’ index for the private service sector (Services PMI) rose to 58.6 in November from an upward revision to 55.3 in October. The service economy has further strengthened and for the fourth straight month the Services PMI is above the historical average. The effects of the rise in Covid-19 cases and tighter restrictions from authorities have not been felt by larger service companies. All subindexes rose in November, which stands out compared with the eurozone, where the PMI numbers dropped, says Jörgen Kennemar, who is responsible for PMI analysis at Swedbank.
• Suppliers’ delivery times accounted for nearly half of the increase in the Services PMI, followed by business volumes, employment and new orders. Delivery times rose in November to the highest level since April and the question is whether it was supply restrictions we were seeing last spring or whether it was a sign of increased demand pressure, says Jörgen Kennemar. We will have to return to this later.
• Service companies’ business plans still have to be considered optimistic, though slightly less so than in November. The index fell to 59.9.
• Silf/Swedbank’s PMI Composite index registered 58.7 in November, the highest level in two years. This indicates robust growth in Swedish business, although there are big differences by sector.
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). The survey for the Services PMI was conducted between 10–27 November.
Next publication of Purchasing Managers’ Index – Services and PMI Composite: Thursday, 7 January 2021
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