PMI fell to 61.6 in February – continued momentum in Swedish industry
• The PMI fell for the second month in a row, to 61.6 in February from 62.5 in January, which is far above the historical average (54.5). Swedish industry continues to report a high level of activity, although longer delivery times may be a sign of supply limitations or disruptions to foreign trade, which eventually could limit manufacturing growth, says Jörgen Kennemar, who is responsible for analysis of the PMI at Swedbank.
• The subindex for new orders was the biggest negative contributor to the PMI (2.5 points) and dropped to the lowest level in six months, while the subindex for production was down 0.3 points. Delivery times and employment rose in February and each contributed one point, with the index for delivery times reaching a record high of 81.2.
• The index for planned production fell marginally in February to 72.5. This is the second month in a row that the index is over the 70 mark, indicating widespread optimism in industry that production will increase in the next six months.
• The index for prices of commodity and intermediate goods rose to 82.9 in February from 78.7 in January, reaching the highest level since autumn 2004. It is becoming increasingly clear that the higher activity in manufacturing industry and rising global commodity prices, but also supply disruptions to foreign trade, have led to increased price pressure at the producer level, which eventually could have an impact at the consumer level, 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 was conducted between February 10–24.
Next publication of the Purchasing Managers’ Index: Thursday, 1 April 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