• PMI at 52.0 in May up from upwardly revised 49.2 in April
• Improvement in all sub indices, except delivery time
• PMI will not affet NB policy
PMI at 52.0 in May up from upwardly revised 49.2 in April
The Norwegian purchasing managers’ index, PMI, rose to 52.0 on a seasonally adjusted basis in May, up from an upwardly revised 49.2 in April. All sub indices improved, expect suppliers’ delivery time. The orders component, which had been in negative territory since February, increased firmly in to positive territory to 52.6 in May, up from 48.2 in April. Also the production component rose markedly to 54.8 in May, up from 48.1 in April. The employment component fell, as we expected, but stayed above the 50 line at 50.8, down from 51.3 in April.
PMI will not affet NB policy
On a month by month basis, the PMI is not the best indicator for actual development in the Norwegian manufacturing sector. Actual manufacturing production has increased steadily since November last year, but fell back in March. Over the same period, the PMI index has hovered around the 50 line, barely indicating growth. The somewhat upbeat PMI reading in May should therefore not affect Norges Bank’s strategy. Norges Bank’s regional network survey is considered a better measure for the development in the Norwegian industrial sectors and for the Norwegian economy as a whole. The Q2 report from the regional network will be presented next Friday and should give us a better indication of the health of the Norwegian firms.
Handelsbanken