PMI fell to 62.5 in April – dropping from high level
- The PMI fell by 2.7 points to 62.5 in April, down from 65.2 in March. The sub-indices for new orders and production decreased, dragging down the PMI, while the readings for employment and delivery times rose, providing a positive contribution. While monthly changes should be taken with caution, the upward trend in the PMI is clear with a further increase in April compared with March, when a three-month moving average is calculated.
- The sub-index for new orders fell by 5.0 points to 63.7 in April, compared with 68.7 in March. It accounted for the biggest negative contribution to the PMI (1.5 points), followed by the sub-index for production, which dropped to 62.7, lowering the PMI by 1.4 points.
- The sub-index for employment increased by 0.7 points in April to a new record high of 64.1. The high level indicates significantly increased hiring needs in the manufacturing sector. Business production plans were slightly less expansionary in April, and the index for production plans fell to 69.8 from 73.5 in March.
- The index for prices of commodity and intermediate goods fell by 5.0 points to 67.5 in April. In spite of this, purchasing managers reported a broad spectrum of rising commodity and intermediate goods prices.
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: Thursday, 1 June 2017
For more information: Jörgen Kennemar, Swedbank Research, phone 08- 700 98 04, firstname.lastname@example.org and Anna Sjöblom, Silf, phone 073 – 518 70 11, email@example.com