PMI rose to 59.1 in November: Industry shifts into higher gear
• The PMI reached 59.1 in November from an upward revision of 58.4 in October. This is the highest level since the fourth quarter of 2017 and the third month in a row that the index is above the historical average (54.4). The Swedish manufacturing sector continues to report robust growth at the same time that production plans have expanded despite an increase in Covid-19 cases and tighter restrictions, says Jörgen Kennemar, who is responsible for analysis of the PMI at Swedbank. Instead, new orders to Swedish industry continue to rise, not least from the export market.
• Three of the five subindexes are over the 60 level for the second month in a row, suggesting a broad expansion. The subindexes for employment, delivery times and new orders together contributed 1.4 points to the increase in the PMI, while the subindexes for production and inventories lowered it by 0.7 points.
• Production plans in November were more upbeat than in October and the index increased to 64.8, the highest level in two years.
• The index for prices of commodity and intermediate goods rose in November to 56.9 from 55.5 in October. This means that price pressure at the producer level is climbing again after a long period of falling prices. This is another piece of the puzzle showing a marked rise in Swedish manufacturing activity, says Jörgen Kennemar.
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). The survey for October was conducted between November 10–26.
Next publication of the Purchasing Managers’ Index: Monday, 4 January 2021
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