PMI remained at 52.0 in July: Stabilization at a low level
• The Purchasing Managers’ Index (PMI) was 52.0 in July, unchanged compared with June. The index has stabilized in recent months but is still at the lowest levels in six years, an indication of continued sluggishness in Swedish manufacturing, says Jörgen Kennemar, who is responsible for analysis of the PMI at Swedbank.
• That manufacturing activity is lackluster is reflected not least in companies’ delivery times and order backlogs, both of which stayed below the 50 mark, raising doubts about the strength of manufacturing activity going forward, says Jörgen Kennemar.
• Inventories provided the biggest positive contribution to the PMI in July, followed by suppliers’ delivery times, employment and new orders, but the index was dragged down by the drop in the production sub-index. Manufacturers’ production plans remain optimistic, as the index rose in July to 61.1 despite global economic uncertainty.
• The index for prices of commodity and intermediate goods rose in July but stayed below the 50 mark for the second month in a row (48.7). The index shows that price pressure at the supplier level remains low, probably in the wake of the weaker manufacturing activity. Since July 2018 the index has fallen nearly 25 points.
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: Monday, 2 September 2019
Jörgen Kennemar, Swedbank Public Affairs, tfn +4670- 643 83 29, firstname.lastname@example.org
Anna Sjöblom, Silf, tfn +4673 – 518 70 11, email@example.com