PMI fell to 57.0 in January: Despite dip, 2018 begins strongly
• The PMI fell to 57.0 in January. This is 3.4 points lower than in December, which means that the new year began with a decline. Despite the downturn, the index remains at a high level. The sub-index for new orders was the largest negative contributor to the PMI at 2.3 points. A three-month moving average for the PMI fell 0.8 points compared with December.
• The sub-index for production fell to 58.9 in January from 62.3 in December, lowering the PMI by 0.8 points. The decline thereby produced the second largest negative contributor to the PMI.
• The sub-index for employment rose to 57.3 in January, which is 1.3 points higher than December. The increase resulted in a positive contribution to the PMI of 0.3 points. In contrast to employment, the sub-index for suppliers’ delivery times fell 4.1 points, negatively contributing to the PMI by 0.6 points.
• The index for prices of commodity and intermediate goods registered 74.8 in January, the highest level since February 2017.
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: Thursday, 1 March 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