PMI rose to 52.4 in August: Growth but lower than normal
• The PMI rose to 52.4 in August from 51.9 in July. The trend during the summer months indicates that the index is stabilizing. While this deviates from other countries, especially in the eurozone, where PMI readings continue to point downward, the downside risks remain high for Swedish industry, says Jörgen Kennemar, who is responsible for analysis of the PMI at Swedbank.
• August was the ninth month in a row that the PMI was lower than the historical average (1994-2019). Suppliers’ delivery times and order backlogs again stayed below the 50 mark, raising doubts about the strength of industrial activity going forward, says Jörgen Kennemar.
• The employment subindex rose for the second consecutive month and was the biggest single contributor to the rise in the PMI in August. Other subindexes in the PMI reported little or no change. On the positive side, industrial production plans still express optimism as the index reached 61.1 in August despite global economic uncertainty.
• The impression that price pressure remains low at the producer level still remains even though the index for prices of commodity and intermediate goods rose in August to 50.7 from 48.7 in July.
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 the Purchasing Managers’ Index: Tuesday, 1 October 2019
Jörgen Kennemar, Swedbank Public Affairs, tfn +4670- 643 83 29, email@example.com
Anna Sjöblom, Silf, tfn +4673 – 518 70 11, firstname.lastname@example.org