Services PMI rose to 59.3 in January: Strong start to 2021
• The purchasing managers’ index for the private service sector (Services PMI) increased to 59.3 in January from an upward revision to 56.9 in December, marking the fourth consecutive month that the index is above the historical average (55.4). The outcome indicates a robust service economy, probably supported by service companies with close ties to manufacturing, but also increased expectations that the coronavirus vaccine will give the service sector a boost, says Jörgen Kennemar, who is responsible for PMI analysis at Swedbank.
• All subindexes rose in January. The subindexes for business volumes and employment each contributed 0.8 points to the increase in the Services PMI, followed by new orders (0.7 points) and delivery times (0.1 points).
• Service companies’ business plans continue to rise. In January, the index rose to 71.0. This is a level not seen since 2018 and shows increased optimism about the market outlook in the coming months.
• Silf/Swedbank’s PMI Composite index registered 60.2 in January from 59.1 in December, which is the highest level since June 2018. While this means that business activity has strengthened at the start of 2021 and also shows the resilience to the increased contagion and the authorities’ tighter restrictions, we are not out of the woods yet, 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 10–27 January.
Next publication of Purchasing Managers’ Index – Services and PMI Composite: Wednesday, 3 March 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