Production in the private service sector increased by a healthy 1.5% m/m in August, well above our call at 0.7%. Production also increased over the year, +0.9%.
Production in the service sector has shown a weak trend for more than a year. Despite the uptick in August, the trend is still not impressive. However, sentiment has improved in the service sector and much suggests that production will continue to rise in the coming months. Coupled with the uptick in sentiment in the manufacturing industry, GDP growth finally seems to recover.
However, GDP growth will probably be sluggish for Q3 and we have to wait to Q4 until GDP growth picks up more markedly.
Details, production private services sector, August:
y/y: 0.9% (Nordea -0.5%; prior unrevised at -0.2%)
m/m: 1.5% (Nordea 0.7%; prior unrevised at -0.2%)
Nordea