Purchasing Managers´Index May 2011
PMI drops to 56.1 in May 2011 – signs of a downturn in the industrial economy
- The PMI dropped by 3.7 index points in May to 56.1, down from 59.8 in April. This is the lowest level since November 2009 and indicates that the Swedish industrial economy continues to lose steam in the spring, though the PMI remains in the growth zone.
- All of the component indices of the PMI dropped in May. The index for new orders made the largest negative contribution to the drop in the composite index, followed by employment and delivery times. Inventories grew, contributing negatively to the PMI, which is due in part to the lower rate of increase in production.
- Industrial companies’ production plans for the next six months remained largely unchanged, signaling continued expansion in Swedish industrial production, though the rising trend in companies’ new orders has leveled off over the past few months.
- The significant decline in global commodities prices over the past month help explain the significant drop in the index for supplier commodity and intermediate goods prices from 74.5 in April to 63.5 in May.