Purchasing Managers’ Index – May 2015
PMI fell to 54.8 in May – stable industrial production with rising prices
- The PMI fell to 54.8 in May from 55.7 in April. New orders were the main reason for the decline, although employment also contributed negatively (-0.3 points) to the main index. Manufacturing has been stable during the year, with a three-month moving average that has fluctuated between 54.2 and 54.9 since January.
- The sub-index for new orders and the index for order backlogs fell in May, though both remained in the growth zone. For May the sub-index for order backlogs was 55.9, contributing negatively (-0.9 points) to the PMI. According to purchasing managers, new orders rose at a slower pace both domestically and from export markets. The index for order backlogs fell to 53.5 in May, the second lowest reading since last October.
- The production sub-index rose from 58.5 in April to 58.9 in May. The stable trend has continued and in May the three-month moving average was 58.3. In the wake of rising production, purchasing managers were more optimistic about the upcoming half-year. The index for planned production rose from 57.6 to 65.1 in May, the second highest reading since April of last year. At the same time personnel needs continued to rise and in May the sub-index for employment was 52.0 (53.5 in April).
- Prices of suppliers’ commodity and intermediate goods rose for the third consecutive month with the index reaching 53.3 in May, an increase of 2.2 points from April. The last time that the index reached this level was in December 2013 and it was back in March 2012 that it last exceeded the May result. The SEK exchange rate and rising prices for oil and plastic raw materials had an impact during the month.
PMI- May 2015