PMI fell to 55.9 in March: Continued expansion
• The PMI fell to 55.9 in March, down 4.0 points from February. Despite the decline, the reading indicates a continued expansion in manufacturing. The sub-index for production was the biggest negative contributor to the PMI, followed by the sub-indices for new orders and employment. A three-month moving average for the PMI registered 57.6, which was 1.5 points lower than in February. Individual months should be interpreted with caution.
• The sub-index for production registered 56.4 in March, or 6.1 points lower than in February. The decrease produced a negative contribution of 1.5 points. The sub-index for new orders registered 57.3 in March, a decrease of 4.1 points since February. This contributed negatively by 1.2 points.
• The sub-index for employment registered 52.3 in March, 6.0 points lower than in February, producing a negative contribution of 1.2 points. The sub-index for suppliers’ delivery times fell, though marginally, by 0.3 points, essentially producing a neutral contribution. Inventories fell slightly to 54.3, producing a slightly positive contribution to the PMI.
• The index for prices of commodity and intermediate goods registered 72.9 in March, which was 1.3 points lower than in February.
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, 2 May 2018
For more information: Oscar Andersson, Swedbank Makroanalys, tfn 08- 700 92 85, firstname.lastname@example.org or Anna Sjöblom, Silf, tfn 073 – 518 70 11, email@example.com