Swedish service sectors continued to expand as PMI services rose to 56.6 in July
Monday, 05 August 2013
The Swedish Purchasing managers' index for services (PMI - Services) rose to 56.6 points in July from 44.9 in June. This means that the total index is back in the growth zone after hitting a downturn in services throughout the second quarter.
This is already being described by the analytic community as better than expected but that large increase, over 11 index points, should be interpreted with considerable caution, given that July is a holiday month, writes Swedbank and industry association Silf which produced the futures.
All four sub-indices of the PMI services rose in July. Orders accounted for the largest contribution to the overall index, closely followed by a significant upturn in the index of business volume. All subindices ended in the growth zone, although indices of supplier delivery times and employment stayed just over the 50 mark.
Service firms' business plans for the next six months was screwed up in July, and the index rose to 61.8, the highest level since June 2011. Index for planned business volume has risen for three consecutive months, suggesting that service firms have gradually become more optimistic about future economic developments.
Index for supplier input prices rose slightly in July to 50.0 from 47.1 in June, after three months under 50 level. An index of 50 mark indicates a continued restraint and cost pressures in service companies.
by Scancomark.com Team