Services PMI rose to 61.1 in January: Broad increase, but orders slow
- The purchasing managers’ index for the service sector (Services PMI) rose from 59.9 in December to 61.1 in January. Three of four sub-components contributed positively to the main index: business volumes, suppliers’ delivery times and employment. On the other hand, the sub-index for new orders fell and contributed negatively. All four sub-components were clearly in the growth zone, however, and three were above the 60 mark.
- The sub-index for new orders fell by 5.3 points to 57.7 in January, producing a negative contribution of 1.8 points, which limited the rise in the Services PMI. The index for order backlogs improved, however, by 1.6 points to 57.8.
- The sub-index for business volumes is chugging along, rising by 3.4 points to 66.5 in January. A three-month moving average indicates an accelerating rate of increase for business volumes in recent months.
- The index for prices of suppliers’ intermediate goods rose by 2.0 points to 59.8. A comparison with January 2016 shows that the index has risen by just over ten points. The index for planned business volumes remains at a high level with a reading of 68.5 in January, compared with 69.9 in December.
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: Friday, 3 March 2017
For more information: Cathrine Danin, Swedbank Macro 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