The Purchasing Managers' Index (PMI) dropped to 50.3 in February 2012, indicating that Sweden's industrial recovery has slowed as new orders declined. However, component indices sent mixed signals, with delivery times and future production plans increasing while prices rose for the second month. The PMI hovering around 50 signals a stalled recovery for Swedish industry.
1. Purchasing Managers’ Index March 1, 2012
PMI drops to 50.3 in February 2012 – halting recovery for
the industrial economy
• The PMI dropped 1.1 points from 51.4 in January to 50.3 in February. This indicates
that the recovery in the Swedish industrial economy has leveled off somewhat. The
hovering of the PMI around the 50 mark signals a halting recovery for the industrial
economy as the order scenario deteriorates and companies refrain from hiring new
personnel.
• However, the PMI’s component indices are sending mixed signals. The indices for
new orders and production dropped, but delivery times are increasing and
companies are ratcheting up production plans for the next six months.
• The index for commodity and intermediate goods prices rose for the second
consecutive month, reaching 52.5 in February. That said, this index level indicates
that price pressure from producers remains limited.
75
Purchasing Managers' Index
70 PMI
(Purchasing Managers’
65 Index)
Seasonally adjusted
60
2012 Feb. 50.3
55 Jan. 51.4
2011 Dec. 48.9
50 Nov. 47.6
Oct. 49.8
45
Sep. 48.1
40
Aug. 48.7
Unadjusted
Jul. 50.1
Seasonally adjusted
35 Jun. 52.9
May 56.1
30 Apr. 59.8
Mar. 58.6
25
Feb. 60.9
94 95 96 97 98 99 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 11 12
Next publication of Purchasing Managers’ Index: Monday, April 2, 2012
Jörgen Kennemar, Swedbank, Economic Research Department, +46 (0)8-5859 7730
Administration, +46 (0)8-5859 7740, ek.sekr@swedbank.se
Sebastian Bergfelt, Silf, +46 (0)73-944 6450, professionals@silf.se
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