PMI dropped to 46.0 in October: Weak conditions persist
• The PMI fell marginally in October to 46.0 from 46.1 in September. This marks the second month in a row that the index is outside the growth zone and at levels that have not been seen since the end of 2012. It shows that growth in Swedish industry has slowed in recent months, probably affected by weaker global conditions, says Jörgen Kennemar, who is responsible for analysis of the PMI at Swedbank.
• Four of five subindexes in the PMI are below the 50 mark, an indication of widespread weakness in the manufacturing sector. The subindexes for new orders, production and inventories rose in October, but from low levels, while employment and suppliers’ delivery times continued to fall.
• The index for manufacturers’ production plans fell in October for the second consecutive month, to 50.0. Companies have become gloomier this fall and fewer expect to increase production in the near term, says Jörgen Kennemar.
• The index for prices of commodity and intermediate goods remains at low levels and is still signaling falling price pressure in industry even though the index rose to 43.5 in October from 43.0 in September.
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 December 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