Services PMI rose to 62.7 in February: Robust service activity
• The purchasing managers’ index for the private service sector (Services PMI) registered 62.7 in February after an upward revision to 59.6 in January, consolidating the recovery that the country’s large service businesses have seen since the second half of 2020 and which is closely tied to manufacturing industry, says Jörgen Kennemar, who is responsible for PMI analysis at Swedbank.
• The subindex for new orders was the biggest single contributor to the increase in the Services PMI (2.6 points), followed by delivery times (1.0 point), while business volumes and employment retreated. Price pressure in the service sector accelerated in February and the index for suppliers’ input prices rose to 65.7 from 56.2 in January.
• Service companies’ plans to increase business volumes in the next six months are holding firm despite the uncertainty surrounding the coronavirus pandemic. The index for service companies’ business plans rose in February to 71.6, the second month in a row that the index surpassed the 70 level.
• Silf/Swedbank’s PMI Composite index increased to 62.4 in February from 60.4 in January. A reading above 60 for the second consecutive month suggests that business activity continues to strengthen and at the same time shows the resilience to the spreading contagion and authorities’ tighter restrictions, 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). The survey for the Services PMI was conducted between 10–24 February.
Next publication of Purchasing Managers’ Index – Services and PMI Composite: Tuesday, 6 April 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