The index has declined over the past three months, but it still remains at a higher level than the same month last year. It is also in a phase of expansion.
According to Jörgen Kennemar, responsible for analyzing the purchasing managers’ index, "The recovery in the service sector is sluggish and shows no clear signs of gaining momentum, despite interest rate cuts. Even though companies are more optimistic in their business plans, they choose to reduce the number of employees, risking continued high unemployment in the future."
The sub-index for new orders accounted for the largest decline in the PMI services. This was followed by production, while the sub-indices for employment and delivery times increased.
Service companies’ business volume plans have risen for the second consecutive month, with the index now at its highest level since the fall of 2022.
The composite purchasing managers’ index decreased in November, dropping to 51.7 from 53.1 (revised from 53.0) the previous month. This is below the historical average of 55.3.
Jörgen Kennemar noted, "The index for raw and input prices rose to 57.1 in November, up from 51.3 in October. This is the highest level in six months and indicates that price pressure is increasing in the service sector, albeit from a low level compared to last year."
A figure above 50 indicates expansion.
| Sweden | November, 2024 | Consensus | October, 2024 | Revised |
|———————————–|——————–|—————|——————-|————-|
| Purchasing Managers’ Index for Services | 50.9 | 53.2 | 52.9 | 53.1 |
| Composite Purchasing Managers’ Index | 51.7 | | 53.0 | 53.1 |
(Data consensus from Bloomberg)
This data provides insights into the current state of the service sector in Sweden and highlights the challenges and opportunities facing companies in the industry. Despite some positive indicators, such as increased business volume plans, there are concerns about the slow pace of recovery and the potential impact on employment levels. The rise in prices also presents a challenge for businesses, indicating a need for careful management of costs and pricing strategies in the coming months.