Swedish Service Sector Expands Marginally In May
Sweden’s service sector activity expanded for the first time in three months in May, though marginally, survey results from Swanbank and the logistics association Silf showed on Wednesday.
The purchasing managers’ index, or PMI, for the services sector rose to 50.8 in May from 48.7 in April. A reading above 50 suggests expansion in the sector. Nonetheless, the trend remained below its historical average of 55.6.
“Although the May outcome was a step in the right direction, we still see no clear signs that growth is picking up in service companies,” Swedbank analyst Jorgen Kennemar said.
Among components, the new orders sub-index accounted for the largest increase, followed by employment, delivery times, and business volume.
On the price front, the index for raw and intermediate goods prices eased to 51.4 in May from 56.5 in April, indicating lower price pressure in the services sector, likely supported by a stronger krona.
The composite output index remained stable at 50.3 in May. The latest reading suggested that the recovery in the business sector was also at a low ebb in May and is weighed down by the service sector while industry is in an expansionary phase.
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