PMI rose to 52.8 in March: Manufacturing activity stabilizes
• The PMI registered a marginal increase in March to 52.8 from 52.7 in February. This marks the second consecutive month that the index has risen, but in reality is more a sign that manufacturing activity has stabilized than that it has strengthened, says Jörgen Kennemar, who is responsible for analysis of the PMI at Swedbank.
• None of the PMI’s sub-indexes saw much change in March. The biggest positive contributions came from manufacturers’ inventories and employment at 0.2 and 0.1 percentage points, respectively, while new orders lowered the total index (0.2 points).
• Order backlog assessments fell in March and mean that in the first quarter of 2019 the index reached its lowest level in six years. Production plans rebounded in March after the weak February outcome. Economic uncertainty and turbulence surrounding Brexit complicate production plans, however, the direction of which will therefore be interesting to watch in coming months, notes Jörgen Kennemar.
• Price pressure at the producer level remains significantly lower than a year ago even though the index for prices of commodity and intermediate goods rose to 51.3 in March from 49.1 in February.
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 May 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