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Purchasing Managers' Index- August 2015

01-09-2015 08:30

PMI fell to 53.2 in August – production growth wanes

  • The PMI fell by 2.0 points to 53.2 in August from 55.2 in July. The picture of steady growth in manufacturing continues, but has become slightly blurrier. All subcomponents, except for inventories of purchased materials, contributed negatively during the month; with production slowing the main index the most.

  • The sub-index for new orders decreased by 1.2 points to 54.6 in August. Underlying growth was nearly as good domestically and in the export market with index readings of 51.8 and 51.5, respectively. This means that domestic and export orders both fell modestly from July, when the two indices reached 52.0.

  • The production sub-index has been volatile during the summer months and noted a decline in August. The sub-index, which fell from 60.8 to 55.4, contributed negatively to the PMI by 1.4 points. Despite the downturn, production growth is robust and the outlook is bright. The index for planned production rose from 60.5 in July to 60.9 in August. The fact that the employment sub-index touched the 50 mark, with a reading of 50.5, at the same time as actual production increased may signal that companies are prioritizing higher productivity.

  • Prices of suppliers’ commodity and intermediate goods fell in August after having risen for five months. The index dropped to 49.0, down 4.8 points from July. August stood out for a broad decline in metal prices, though rising prices of plastic raw materials and a weaker SEK exchange rate moderated the downturn.

Pmi- Aug 2015

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