Sweden Service Sector Turns Contraction In April

(RTTNews) - Sweden's service sector activity deteriorated for the first time in five months in April, survey results from Swedbank and the logistics association Silf showed on Monday.

The purchasing managers' index, or PMI, for the services sector fell to 48.1 in April from 54.1 in March. A score above 50 indicates expansion, while any reading below 50 indicates contraction in the sector.

The business volume index accounted for the largest negative contribution to the headline PMI, followed by orders received and delivery times, while employment made a positive contribution for the second month in a row. 

"It is a surprisingly large decline, which may be temporary, but signals that the economic recovery rests on a fragile foundation," Swedbank analyst Jorgen Kennemar said.

Data showed that the index for commodity and input prices rose to 61.9 in April from 58.7 in March, indicating higher price increases in the service sector compared to industry.

The composite output index dropped to 49.0 in April from 53.0 in March, signalling that the level of activity in the business world lost momentum.