Purchasing Manager's Index- Services, January 2016
Services PMI rose to 59.3 in January: Super strong new orders
- The purchasing managers’ index for the service sector (Services PMI) rose to 59.3 in January from 58.0 in the previous month. The biggest positive contribution was from new orders, but business volumes also contributed positively, while suppliers’ delivery times and employment had the opposite effect. The Swedish service sector continued to demonstrate strength with all sub-indices in the growth zone and upbeat production plans for the coming half-year.
- With a reading of 63.2, the sub-index for new orders reached the highest level in a year and a half. The increase between December and January was 5.1 points and the contribution to the Services PMI was 1.8 points. In spite of this, the index for order backlogs fell from 55.8 to 54.3 in January and its rate of increase slowed.
- The sub-index for business volumes rose to 62.2 in January from 61.3 in December. In three of the last four months the reading has stayed above 60. In addition, business plans remained optimistic (69.3) and service companies saw their hiring needs rise (55.5).
- Prices of suppliers’ intermediate goods fell for the first time in a year and a half. In January the index was 48.8. This means that it lost 5.5 points since the previous month, or 6.5 points compared with January of last year.
PMI Services January 2016