PMI fell to 60.9 in February – Very strong manufacturing conditions
- The PMI fell by 1.1 points to 60.9 in February, down from 62.0 in January. The sub-indices for production and employment contributed to the monthly decrease. All sub- indices except inventories remained at levels above 59.0, however.
- The sub-index for production dropped 4.0 points from 68.0 in the previous month to 64.0 in February. Despite the decline, the sub-index’s February reading is the third highest in just over five years, and by a wide margin signals growth. The sub-index for new orders rose by 0.2 points to 62.1 in February, i.e., three months in a row over 60.0. The sub-index has held firmly in the growth zone since September.
- The sub-index for employment fell by 2.0 points in February to 59.1. Despite a negative contribution to the PMI, the sub-index remains at high levels and indicates continued good employment growth. There has only been one higher monthly reading in the last five years, i.e., the previous month.
- The index for prices of commodity and intermediate goods rose by 2.7 points to 76.9 in February. The last time that the index was at this level was before the financial crisis. Purchasing managers pointed to a broad spectrum of rising commodity and intermediate goods prices, including for metals and chemicals.
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: Monday, 3 April 2017
For more information:
Cathrine Danin, Swedbank Macro Research, phone +46 (0) 8- 700 92 97, firstname.lastname@example.org or Anna Sjöblom, Silf, phone +46 (0) 73 – 518 70 11, email@example.com