The service sector PMI rose to the healthy level of 57.0 in November from 53.8 in October. The report is encouraging and yet another sign that growth in the domestic economy is healthy.
All sub-indices rose, apart for suppliers input prices. New orders rose to 60.7, the highest level since early 2011, indicating that the PMI will stay at good levels also in the coming months.
The index for employment rose but is still at a rather modest level at 52.7. However, the index for employment has been a rather poor indicator for the past year. The index has been hovering around the 50-mark during the past two years while employment in the service sector has been skyrocketing.
The service PMI is perhaps not the most important indicator for the Riksbank, but on the margin the uptick in the sentiment supports our view that the Riksbank will stay on hold at the December-meeting.
Details November:
Service sector PMI: 57.0 (prior 53.8)
Employment: 52.7 (prior 50.8)
New orders: 60.7 (prior 54.7)
Order books: 54.1 (prior 51.2)
Business volume: 57.8 (prior 56.0)
Planned business volume: 67.3 (prior 62.8)
Nordea