PMI rose to 55.8 in May, remaining at a healthy level
• The PMI rose to 55.8 in May from 54.5 in April, rebounding after a two-month decline. The PMI consequently remains at a healthy level. The sub-index for new orders contributed the most to the increase, followed by employment. Inventories also contributed positively to the PMI, while suppliers’ delivery times produced a slightly negative contribution. A three-month moving average for May was 55.4, which is 1.4 points lower than the previous average. Individual months should be interpreted with caution.
• The sub-index for production rose to 54.3 in May, which is 0.7 points higher than in April. This positively contributed 0.2 points to the PMI. The sub-index for new orders rose 3.0 points to 57.0 in May, producing a positive contribution of 0.9 points.
• The sub-index for employment rose to 57.3 in May from 53.6 in April, positively contributing 0.7 points to the PMI. At the same time the sub-index for suppliers’ delivery times marginally fell to 59.3 in May. This produced a slightly negative contribution of 0.07 to the PMI.
• The index for prices of commodity and intermediate goods rose to 72.3 in May from 68.8 in April.
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, 2 July 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