PMI dropped to 54.7 in August – lowest level to date in 2017
- The PMI fell by 5.6 points to 54.7 in August, compared with 60.3 in July. Production was the biggest contributor to the decline, followed by new orders. Both contributed negatively by more than two points each. All sub-indices contributed negatively, however. While monthly changes should be interpreted with caution, it is noteworthy that the August outcome is the lowest to date in 2017.
- The sub-index for production fell by 10.9 points to 53.5 in August, negatively contributing to the Purchasing Managers’ Index by 2.7 points. The sub-index for new orders fell by 7.6 points to 53.9, lowering the PMI by 2.3 points.
- The sub-index for employment fell by 1.7 points, negatively contributing 0.3 points to the PMI. The sub-index for suppliers’ delivery times also declined, adding a negative contribution of 0.3 points.
- The index for prices of commodity and intermediate goods rose by 2.9 points to 57.8 in August, the highest reading since April, though the June outcome was very similar (57.7).
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: Monday, 2 October 2017
For more information please contact:
Ingrid Wallin Johansson, Swedbank Research, phone +468- 700 92 95, email@example.com or Anna Sjöblom, Silf, phone +4673 – 518 70 11, firstname.lastname@example.org