PMI fell to 46.3 in September: Manufacturing continues to slow
• The PMI dropped by 5.5 points in September to 46.3 from a downward revision of 51.8 in August. This is the largest monthly decline since autumn 2008 and was part of the reason why the PMI fell in the third quarter to the lowest level since early 2013. It seems as if resilience to a weakening global economy has decreased in the Swedish manufacturing sector, although individual monthly outcomes should be interpreted with caution, says Jörgen Kennemar, who is responsible for analysis of the PMI at Swedbank.
• The downturn in September was broad with three of five subindexes in the PMI below the 50 mark. The subindexes for production and new orders saw the largest monthly decreases and together contributed 4.2 points to the downturn in the PMI.
• Manufacturers’ production plans are less ambitious and suggest increased cautiousness, says Jörgen Kennemar. The index dropped by 6.8 points to 54.2 in September compared with August.
• The index for prices of commodity and intermediate goods decreased to 42.2 in September from 50.9 in August. This is the lowest level in over three years and signals continued weak price pressure at the producer level
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: Friday, 1 November 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