Sweden Services Growth At 26-Month Low

(RTTNews) - Sweden's service sector activity expanded at the slowest pace in just over two years in September, survey data from Swedbank and the logistics association Silf showed on Wednesday.

The purchasing managers' index for the services sector dropped to 55.1 in September from 58.6 in August. However, a reading above 50 indicates expansion in the sector.

"It shows that growth in the service sector is slowing down now that the industrial economy is weakening and households' purchasing power is eroded in the wake of high inflation and rising interest costs," Swedbank analyst Jorgen Kennemar said.

Among components, supplier delivery times account for the largest negative contribution to the decline in PMI services, followed by order intake, business volume and employment.

The index reflecting business volume plans was less optimistic in September, with the index falling to 58.7, the lowest level in more than two years.

Cost pressures remained high in September amid higher purchase costs due to the weakening of the krone and rising energy prices.

The composite PMI, which combines manufacturing and services, fell to 53.5 in September from 56.3 in the previous month.