Purchasing Managers´Index, August 2011
PMI drops to 48.7 in August 2011 – marked slowdown in the industrial economy
- The PMI total fell to 48.7 in August, down from 50.1 in July, thus dropping out of the growth zone for the first time since May 2009. The recovery in Swedish industry appears to have halted as the economy slows. The industrial economy is looking significantly weaker than it did in the spring.
- August brought widespread economic cooling, as three of the PMI’s five component indices have fallen out of the growth zone – the exceptions being employment and inventories. Delivery times and employment accounted for the bulk of the drop in the PMI, while new orders and production landed below the 50 mark for the second consecutive month.
- The index for production plans dropped by 7.3 points to 55.8 as companies made downward revisions amid signs of a weakening global economy. Despite these downward revisions, production plans remained in the growth zone.
- The weakening economy and lower global commodity prices have contributed to further decreases in price pressure on producers. The index for supplier commodity and intermediate goods prices dropped from 51.5 in July to 47.4 in August – the lowest level since summer 2009.