Purchasing Managers' Index
PMI decreased to 60.6 in August 2010 from 64.2 in July.
PMI declines to 60.6 in August 2010 – the rate of increase in production and new orders has slowed
- The PMI declined to 60.6 in August, compared with 64.2 in July. While the Swedish manufacturing industry continues to expand, the rate of increase has leveled off compared with the spring and summer months.
- The component index for industrial production had the greatest negative impact on the PMI, followed by new orders which rose but at a more moderate rate. The slower rate of expansion can be seen in both the home and export markets.
- However, companies’ production plans continued to rise somewhat, and a majority of them expect to expand in the next six months despite signs of weaker global activity. Moreover, the industrial sector continues to hire new employees. The component index for employment reached 60.5 – the highest point since 1995.
- The majority of industrial companies are now reporting rising prices for commodities and intermediate goods, but the decline of the index to 68.5 indicates that the price increases are slowing down as global economic growth begins to level off.
