PMI rose to 57.4 in July: Expansion continues
• The PMI rose to 57.4 in July, which is 3.2 points higher than in June. The outcome supports a continued expansion in manufacturing. The sub-index for production was clearly the biggest contributor to the PMI, followed by the sub-indexes for new orders and employment. The sub-index for suppliers’ delivery times produced a marginal contribution. A three-month moving average for July rose to 55.8 from 54.8 in June. Individual months should be interpreted with caution.
• The sub-index for production rose 7.7 points to 59.7 in July, at the same time contributing 1.9 points to the PMI. The sub-index for new orders added 3.1 points and contributed 0.9 points.
• The sub-index for employment was 56.6 in July, which is 2.1 points higher than in June. The increase contributed 0.4 points to the PMI. Moreover, suppliers’ delivery times rose 0.9 points to 63.1 in July, resulting in a marginal contribution of 0.1 point to the PMI.
• The index for prices of commodity and intermediate goods rose to 74.4 in July from 70.7 in June.
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, 3 September 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