PMI fell to 54.2 in June: Despite decline, expansion continues
• The PMI fell to 54.2 in June from 55.8 in May. The outcome supports a continued expansion in manufacturing, however. The sub-index for new orders produced the biggest negative contribution to the PMI, followed by production and employment. Suppliers’ delivery times positively contributed to the PMI. A three-month moving average for June fell to 54.8, which is 0.6 points lower than the corresponding average for May. Individual months should be interpreted with caution.
• The sub-index for production fell to 52.0, which is 2.3 points lower than in May. This produced a negative contribution of 0.6 points. The sub-index for new orders fell to 54.5 in June from 57.0, producing a negative contribution of 0.8 points.
• The sub-index for employment reached 54.5, falling by 2.8 points and lowering the PMI by 0.6 points. At the same time suppliers’ delivery times rose to 62.2, positively contributing 0.4 points to the PMI.
• The index for prices of commodity and intermediate goods fell to 70.7 in June from 72.3 in May.
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: Wednesday, 1 August 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