Services PMI dropped to 60.3 in April: Good start to second quarter
- The purchasing managers’ index for the service sector (Services PMI) fell by 1.0 point to 60.3 in April. The decrease came from the sub-indices for suppliers’ delivery times and employment, each of which lowered the Services PMI by about 0.5 points. Despite the decline, the April result points to a good start for the service sector in the second quarter with all sub-components clearly in the growth zone.
- Minor changes were reported in the sub-indices for business volumes and new orders. The reading for business volumes was 62.4 in April (-0.2 points), while for new orders it was 61.7 (+0.1). In the last half-year both have stayed in the growth zone by a fairly wide margin. This, coupled with rising delivery times and order backlogs, may be a sign of growing demand in the service sector.
- The sub-index for employment fell by 2.6 points to 56.9 in April. Seen over time, the sub-index indicated rising employment in 23 of the last 24 months.
- The index for prices of suppliers’ intermediate goods dropped to 62.8 in April from 65.9 in March. At the same time the average for Feb-Apr shows that prices accelerated compared with Nov-Jan.
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 purchasing managers’ index 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 purchasing managers’ index 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 Purchasing Managers’ Index – Services: Monday, 5 June 2017
For more information: Cathrine Danin, Swedbank Research, phone +46(0) 70– 540 68 78, firstname.lastname@example.org and Anna Sjöblom, Silf, phone +46(0) 73 – 518 70 11, email@example.com