Sweden: Services PMI stays high

The service sector PMI stays at a fairly elevated level which suggests a continued decent growth in the sector. Admittedly, the indicator declined slightly in January, to 55.9 down from 57.7, but given the volatility of the indicator this setback can be ignored. The previously released NIER survey for the private service sector was also more upbeat.

Compared to December most sub-indices declined somewhat. Despite falling back somewhat in January, the sub-index for order intake stays at a relatively high level. The sub-index for employmentremained below the 50-mark. However, employment growth has been strong in recent years even during periods when the employment index has been below 50.

All in all, the January PMI supports our view of a strong momentum in the domestic economy. Today’s figures also should provide some comfort for the Riksbank as they have a rather optimistic view on the domestic economy.

Details January:

Service sector PMI: 55.9 (Nordea 57; consensus 57.3; prior 57.7)
Employment: 49.8 (prior 49.9)
New orders: 58.3 (prior 62.4)
Order books: 56.6 (prior 56.8)
Business volume: 58.8 (prior 62.0)
Planned business volume: 64.9 (prior 68.9)