PMI fell to 55.0 in October: Stabilization in the growth zone
• The PMI saw little change in October, falling 0.2 points to 55.0 compared with September. This means that the total index is still in the growth zone but at a lower level than the beginning of the year, signaling a slowing growth rate in the manufacturing sector.
• The sub-indexes for new orders and suppliers’ delivery times fell in October, each contributing 0.6 points to the decrease in the PMI. The sub-indexes for employment and production rose and together with stocks of items purchased helped to limit the decrease in the PMI. It should be noted that the employment index rose to the highest level since November 2017.
• Manufacturers continue to plan production increases, suggesting an optimistic economic outlook, even though the index for production plans fell in October to 63.5. Production plans are also getting support from rising order backlogs, which reached the highest level since February of this year.
• The index for prices of commodity and intermediate goods fell in October to 64.6, compared with 67.5 in September, 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, 3 December 2018
Jörgen Kennemar, Swedbank Public Affairs, phone +4670- 643 83 29, email@example.com
Anna Sjöblom, Silf, phone +4673 – 518 70 11, firstname.lastname@example.org