PMI fell to 52.5 in August: Lowest level so far in 2018
• The PMI fell to 52.5 in August from 57.4 in July. Despite the decline, the outcome supports a continued manufacturing expansion. The biggest negative contribution came from the sub-index for production, followed by the sub-index for new orders. The sub-indices for employment and delivery times also contributed negatively to the PMI. A three-month moving average for August fell to 54.7 from 55.8 in July. Individual months should be interpreted with caution.
• The sub-index for production was 52.2, which is 7.5 points lower than in July. The decrease in the sub-index produced a negative contribution to the PMI of 1.9 points.
• The sub-index for new orders fell to 52.5 in August from 57.6 in July, negatively contributing to the PMI by 1.5 points. At the same time suppliers’ delivery times decreased 5.0 points to 58.1 in August, resulting in a negative contribution of 0.8 points.
• The index for prices of commodity and intermediate goods fell to 65.8 in August from 74.3 in July.
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, 1 October 2018
For more information: Oscar Andersson, Swedbank Makroanalys, phone 08- 700 92 85, email@example.com or Anna Sjöblom, Silf, phone 073 – 518 70 11, firstname.lastname@example.org