PMI jumped to 69.1 in April – manufacturing hits record speed
• The PMI rose to 69.1 in April from an upward revision to 64.7 in March and is the second highest level in the index’s 26-year history. Since bottoming out in April 2020, the PMI has increased by 32.7 points, which is a significantly faster than in the recovery after the global financial crisis in 2008-2009, says Jörgen Kennemar, who is responsible for analysis of the PMI at Swedbank.
• All subindexes in the PMI rose in April with new orders and delivery times reaching record levels. The subindex for new orders was the biggest positive contributor to the monthly increase in the PMI, followed by production, delivery times and employment.
• The index for planned production registered 75.3 in April and indicates growing optimism in manufacturing industry that production will increase in the next six months. Disruptions to global trade and shortages of input goods do not yet seem to have affected production plans, although the danger is not over.
• The index for prices of commodity and intermediate goods rose to 89.7 in April from 85.2 in March, which is the highest level in 26 years. It is becoming increasingly clear that higher activity in manufacturing industry, rising global commodity prices and supply disruptions have led to increased cost pressure at the producer level, which eventually could have an impact on consumer prices, notes 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 was conducted between April 12–26.
Next publication of the Purchasing Managers’ Index: Tuesday, 1 June 2021
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