PMI rose to 59.9 in February: The trend remains strong
• The PMI rose to 59.9 in February from 57.0 in January, a gain of 2.9 points. The high number is an indication of the continued strength in manufacturing. The sub-index for new orders contributed the most to the increase, adding 2.0 points to the PMI. A three-month moving average for the PMI fell 1.1 points compared with January. Individual months should be interpreted with caution.
• The sub-index for production rose 3.6 points in February to 62.6. The increase added 0.9 points to the PMI, the second highest contribution. Despite the increase, the three-month moving average fell to 61.3, which is 0.7 points lower than the average for January.
• The sub-index for employment registered 58.3 in February, which is 1.0 point higher than in January. The increase resulted in a positive contribution to the PMI of 0.2 points. Aside from employment, suppliers’ delivery times rose as well, by 0.5 points, producing a marginal contribution of 0.1 points to the PMI.
• The index for prices of commodity and intermediate goods registered 74.1 in February, which is 0.8 points lower than in January.
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: Tuesday, 3 April 2018
For more information: Oscar Andersson, Swedbank Makroanalys, phone 08- 700 92 85, firstname.lastname@example.org or Anna Sjöblom, Silf, phone 073 – 518 70 11, email@example.com