Purchasing Managers´Index July 2011
PMI falls to 50.1 in July – industrial production stagnating
- The PMI dropped to 50.1 in July compared to 52.9 in June and is thus approaching the 50 mark – the floor of the growth zone. This indicates that the Swedish industrial economy is no longer expanding. That said, data from the summer months can be unreliable, and should be interpreted with caution.
- As was the case last month, production and new orders accounted for the most significant contributions to the drop in the PMI. The component index for new orders from both home and export markets dropped out of the growth zone. The index for companies’ delivery times also made a negative contribution.
- The component index for production plans is still within the growth zone, though it remains on the decline. In addition, companies reported a growing need to hire. This indicates that companies see opportunities to increase employment and production, albeit not as much as before.
- Pressure on raw and intermediate goods prices dropped significantly in July. The index level of 51.5 indicates a more agreeable cost structure for companies.