PMI dropped to 60.4 in July – decline from a high level
- The PMI fell by 1.9 points to 60.4 in July, compared with 62.3 in June. The decline was mainly driven by new orders, though several sub-indices contributed negatively. With the exception of May, the Manufacturing PMI has stayed above 60.0 since December of last year.
- The sub-index for new orders fell by 4.4 points to 61.5 in July. New orders contributed negatively to the PMI by 1.3 points. The only sub-index with a positive contribution was production. The sub-index for production reached 64.4 in July, adding 0.3 points to the PMI.
- The sub-index for employment dropped by 3.1 points to 57.6 in July. This lowered the PMI by 0.6 points. At the same time the index for business production plans fell to 68.6 from 73.0 in June.
- The index for prices of commodity and intermediate goods fell in July by 2.9 points to 54.9, the lowest level since August 2016.
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 purchasing managers’ index 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 purchasing managers’ index 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: Friday, 1 September 2017
For more information, contact Cathrine Danin, Swedbank Makroanalys, phone +468- 700 92 97, firstname.lastname@example.org or Anna Sjöblom, Silf, phone +4673 – 518 70 11, email@example.com