Services PMI rose to 59.0 in July: Broad gains
- The purchasing managers’ index for the service sector (Services PMI) rose from 57.2 to 59.0 in July. All sub-indices contributed positively and together business volumes, suppliers’ delivery times and new orders explain 90 percent of the increase in the main index.
- The sub-index for business volumes rose from 58.3 to 60.1 in July. This contributed positively to the Services PMI by 0.5 points. At the same time business plans remained expansive and the index reached 67.3 (i.e., up 1.6 points from June). The optimism of purchasing managers about the next six months aligns well with rising demand for services.
- The sub-index for new orders rose from 57.8 to 59.3 in July. The index for order backlogs also rose, with a reading of 57.9, the highest since January. For employment, whose sub-index increased from 55.4 to 56.4 in July, the contribution to the Services PMI was 0.2 points.
- The index for prices of suppliers’ intermediate goods rose to 60.2 in July from 58.7 in June. A three-month moving average showed that the short-term trend has tailed off in the last two months.
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: Tuesday, 5 September 2017
For more information, contact Cathrine Danin, Swedbank Makro, phone 08 – 700 92 97, email@example.com or Anna Sjöblom, Silf, tfn 073 – 518 70 11, firstname.lastname@example.org