PMI rose to 62.4 in June – broad gains driven by new orders
- The PMI rose by 3.6 points to 62.4 in June, compared with 58.8 in May. Although outcomes for individual months should be interpreted cautiously, the gains were broad with all sub-indexes in the PMI contributing positively. The largest increases were in new orders and production. The average for the second quarter was lower than the first quarter, however, down 1.6 points to 61.2.
- The sub-index for new orders rose by 7.3 points to 65.9 in June, driven by both domestic and export markets. As a result, the sub-index provided the biggest positive contribution to the PMI (2.2 points), followed by the sub-index for production, which rose to 63.5, adding 0.9 points to the PMI.
- The sub-index for employment increased in June to 60.7, up 1.5 points compared with May. At the same time business production plans were more expansionary and the index for production plans again surpassed the 70 level (73.0).
- The index for prices of commodity and intermediate goods turned higher in June and reached 57.9, compared with 55.7 in May. This marks the first time since February that the index rose, but the level is still significantly lower than the year-to-date high (76.9 in February).
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: Tuesday, 1 August 2017
For more information, contact Ingrid Wallin Johansson, Swedbank Macro Research, phone +46 (0)8 700 92 95, firstname.lastname@example.org or Anna Sjöblom, Silf, phone +46 (0)73 518 70 11, email@example.com