Purchasing Managers´Index Services February 2012
Services PMI drops to 54.0 in February: the service sector economy is stabilizing
- The purchasing managers’ index for services (Services PMI) dropped marginally from 54.4 in January to 54.0 in February. This marks a break in the upturn observed since December. Still, the index remains in the growth zone, which indicates that the service sector is expanding, albeit at a somewhat slower pace.
- All but one of the Services PMI’s component indices fell, the exception being the index for business activity, which climbed 2.8 points. This increase in business activity may reflect the increase in new orders observed in January. The indices for new orders, employment, and supplier delivery times all fell in February, but all remain above the 50 mark.
- Service companies have ratcheted up their business plans for the next six months, which are now at their highest level since July. This indicates that the service sector’s outlook for the economy remains positive.
- The index for supplier intermediate goods prices dropped in February. A cooling trend in the overall economy and a stronger Swedish krona may have contributed to lower cost pressure for service providers.