PMI rose to 56.7 in November: Expansion despite economic jitters
• The PMI rose in November to 56.7 from 55.0 in October, indicating a continued expansion in Swedish manufacturing. The outcome has to be seen as a show of strength against the backdrop of the lower PMI readings from the eurozone and other areas and the concerns about the global economy. While monthly readings should be interpreted with caution, the total index has trended slightly higher in the latest three-month period (Sep-Nov) after a previous downturn.
• The biggest contribution to the increase in the PMI was from the production sub-index, followed by new orders and suppliers’ delivery times. Notably, export orders and order backlogs both rose in November. On the other hand, the sub-index for employment fell after having risen two months in a row.
• Production plans were more robust in November and the index rose to 68.6. This is the highest level since September 2017 and suggests an optimistic economic outlook.
• The index for prices of commodity and intermediate goods fell for the second consecutive month in November to 61.6, compared with 64.6 in October, which is the lowest level since August 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, 2 January 2019
Jörgen Kennemar, Swedbank Public Affairs, phone +4670- 643 83 29, firstname.lastname@example.org
Anna Sjöblom, Silf, phone +4673 – 518 70 11, email@example.com