PMI rose to 62.0 in January – Manufacturing begins the year strongly
- The PMI rose from 60.2 in December to 62.0 in January, its highest reading since autumn 2010. The sub-indexes for production and employment were the biggest contributors to the PMI. All sub-indexes except inventories are above the 60 mark.
- The sub-index for production improved by 3.0 points to 68.0, positively contributing 0.7 points. The rising trend for the sub-index appears to be holding firm.
- The sub-index for employment gained 3.5 points to 61.1 in January, contributing 0.7 points to the PMI. The rising trend points to increased hiring needs in industry.
- Based on responses by purchasing managers in the manufacturing sector, the sub-index for new orders continued to rise slightly to 61.9 in January, compared with 61.3 in the previous month.
- The index for prices of commodity and intermediate goods continued to rise to high levels with a reading of 74.1 in January, compared with 70.9 in December. Since hitting a low in February, the sub-index has added nearly 40 points. Purchasing managers in the manufacturing sector saw prices rise for steel (for the tenth consecutive month) as well as other metals in January.
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 both for the manufacturing and the service sector. 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 an index 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 08:30, while the corresponding index for the service sector is published on the third banking day of each month at 08:30.
Next publication of Purchasing Managers’ Index: Wednesday, 1 March 2017
For more information: Jörgen Kennemar, Swedbank Makroanalys, tfn 08- 700 98 94, email@example.com and Anna Sjöblom, Silf, tfn 073 – 518 70 11, firstname.lastname@example.org