Swedish services sector crumple as PMI in the services sector fell to 47.4 in June

Wednesday, 04 July 2012
The services sector which is the growing driver of the Swedish economic sent a signal that the economy is really weaker that previously thought. Just a few days ago the PMI for the industrial sector fell to a new low, now come that of services also at another very low level.
The purchasing manager’s index for services (PMI - services) fell to 47.4 in June from 47.7 in May. This is the lowest level since the summer of 2009 and means that the activities in the in the service firms has weakened further. Fewer jobs in service firms is also recorded to show that weakens activities.

Employment accounted for the largest negative contribution to the PMI services which fell, followed by corporate deadlines. Although indices of service enterprises turnover and new orders rose in June, they are still outside the growth zone.

Service companies planned business volume for the next six months have been revised downwards in the wake of a weaker world economy and shrinking order books. It is also likely that the scopes for new employment are limited.

Index of suppliers' input prices fell to 50.9 in June from 51.0 in May. Weak demand and an uncertain world economy contribute to fewer companies report rising input prices, which should also dampen domestic price pressures in the Swedish economy.
By Scancomark.se Team / News source: Swedbank

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