PMI rose to 65.2 in March – Manufacturing finishes Q1 in high gear
- The PMI rose by 4.3 points to 65.2 in March, up from 60.9 in February. All sub-indices added to the increase, with new orders and production providing the biggest contributions. While monthly changes should be taken with caution, the upward trend in the PMI is clear and points to strengthening manufacturing activity.
- The sub-index for new orders rose by 6.4 points to 68.6 in March, compared with 62.2 in February. This is the highest level since 2006 and underscores increased demand from both the domestic and export markets. The average in the first quarter of the year shows that the sub-index for new orders rose to 64.3 from 60.2 in the fourth quarter of 2016.
- The sub-index for employment increased by 4.2 points in March, reaching 63.4. Business production plans have become more expansive and the index for production plans rose in March to 73.5 from 69.6 in February.
- The index for prices of commodity and intermediate goods fell by 4.5 points to a still high reading of 72.5 in March. In spite of this, purchasing managers reported a wide spectrum of rising commodity and intermediate goods prices, including for metals and plastics.
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, 2 May 2017
For more information: Jörgen Kennemar, Swedbank Macro Research, phone +46 (0)8- 700 98 04, firstname.lastname@example.org and Anna Sjöblom, Silf, phone +46 (0)73 – 518 70 11, email@example.com